A trader sells computer hardware with a warranty that he is responsible for any repair within a year
of sale. He may recognise the sales income at the point of sale because:
(a) That is usually the practice among such traders
(b) It is unlikely that repairs will become necessary within the first year
(c) There is a possibility of not undertaking the repairs, blaming the customer for wrong usage

(d) From experience the trader can quantify the cost of such repairs and account for it separately