In what year, 2003 or 2004, should Ford Motor Co. recognize the cost of the warranty repairs as an… 1 answer below »
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On December 30, 2003, you buy a Ford Expedition. It comes with a three-year, 36,000- mile warranty. On January 21, 2004, you return the Expedition to the dealership for some basic repairs covered under the warranty. The cost of the repairs to the dealership is $315. In what year, 2003 or 2004, should Ford Motor Co. recognize the cost of the warranty repairs as an expense?
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