226 - Warranty Receivables

Current Assets

Receivables

Synopsis

Account 226

Debits

Credits

  1. The amount of claims submitted to SOA/Distributor/Manufacturer for warranty work.

  2. The amount of transportation and marine damage claims submitted to SOA/Distributor/Manufacturer.

  1. All cash and/or credits received applicable to such claims.

  2. The amount of disallowed claims.

  3. Any variance between the amount claimed and the actual amount paid.

 

 

Remarks:

Warranty Receivables is a control account and the total of the individual open claims listed in the warranty sales journal/claims register should agree with this general ledger account balance each month-end.

 

Warranty service records must be maintained in accordance with current Subaru warranty policy.

 

The offsetting entry for variances (overages, shortages, or denials) between the amount claimed and the amount credited should be charged to the responsible department’s Account 67 – Policy Work Expense.

 

A month-end schedule should be prepared showing the amount of each unpaid claim.  Any difference between the total of this schedule and the account balance should be investigated and adjusted through the responsible department’s Policy Work Expense, Account 67.

Note: