WARRANTIES Moon Electronics sells television sets and other sound and video equipment. Sales and expected warranty claims for the year are as follows:

Item Unit Sales Expected Warranty Claims for Warranty Period Cost per Claim Television set 860 1 claim per 100 sold $60 VCR 290 10 claims per 100 sold 38 Stereo 1,800 4 claims per 100 sold 42 Required:

Prepare the entry to record warranty expense for Moon Electronics for the year.

Exercise