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14. ACCRUED WARRANTY | 3 Months Ended
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Mar. 31, 2020
Less: Accumulated Amortization |
NOTE 14. ACCRUED WARRANTY | Our manufacturer assumes warranty against product defects for one year from the sale to customers, which we extend to our customers upon sale of the product. We assume responsibility for product reliability and results. The warranty is generally limited to a refund of the original purchase price of the product or a replacement part. We estimate warranty costs based on historical warranty claim experience.
| The following table presents warranty reserve activities at:
|  | March 31, 2020 (Unaudited) |  |  | December 31, 2019 |
Beginning accrued warranty costs |  | $ | 30,000 |  |  | $ | 30,000 |
Provision for warranty expense |  |  | 31,864 |  |  |  | 2,609 |
Settlement of warranty claims |  |  | (1,864 | ) |  |  | (2,609 | )
Ending accrued warranty costs |  | $ | 60,000 |  |  | $ | 30,000 |

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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI http://asc.fasb.org/topic&trid=2155896 + Details
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