In late 2018, the company’s claims experience was evaluated and it was determined that claims were far morethan expected—3% of sales rather than 2%.Required:1. Assuming sales of the sprinklers in 2018 were $3.6 million and warranty expenditures in 2018 totaled$88,000, prepare any journal entries related to the warranty.2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entry(s) in 2018 related tothe warranty

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A: Estimated warranty obligation 2015 = $800,000 * 4% + $1,000,000 * 2%…

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A: The question is based on the concept of Financial Accounting.

Q: During 2020, Buenas Company introduced a new product carrying a two-year warranty against defects.…

A: The question is based on the concept of Financial Accounting.

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A: Current balance in warranty liability = $36,000 Estimated warranty liability = 4% of sales =…

Q: Early in 2020, Pina Equipment Company sold 400 Rollomatics at $ 6,000 each. During 2020, Pina spent…

A: The journal entries are prepared to keep the record of day to day transactions of the business.