Taurelle must replace at its customers' premises boilers fitted with a defective burner; the best estimate of the cost is 88,000. The burner supplier, under its contractual warranty, will virtually certainly reimburse 64,000; Taurelle would nevertheless have to pay the full amount if that supplier defaulted. Record the provision and the reimbursement (gross presentation in profit or loss).
- Estimated replacement cost
- 88,000
- Supplier's reimbursement
- 64,000