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Definitions:
Product Warranty Expense
Costs associated with the repair or replacement of defective products during the warranty period.
Product Warranty Payable
A liability account that represents the amount a company expects to pay to repair or replace products under warranty.
Matching Concept
A fundamental accounting principle that requires expenses to be recorded in the same period as the revenues they help generate.
Product Warranty Expense
The cost associated with repairing or replacing products under warranty, recognized by companies to cover future warranty claims.
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