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14.7. Shaw Co provides a 3-year warranty on any small appliance that it manufactures. In the past, warranty claims have been made on 2% of

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14.7. Shaw Co provides a 3-year warranty on any small appliance that it manufactures. In the past, warranty claims have been made on 2% of all appliances sold and have cost Shaw an average of $10 per claim to repair. During years D and E, the following transactions and events occur: Year D Year E Appliance sales 10k units 12k units Warranty costs incurred $1800 $2200 On 1/1/year D. Estimated Warranty Liability was $4000. Assuming Shaw uses the usual accrual method, provide the following amounts: a. Year D warranty expense. b. Year E warranty expense. c. 12/31/D balance in Estimated Warranty Liability. d. 12/31/E balance in Estimated Warranty Liability. 14.7. Shaw Co provides a 3-year warranty on any small appliance that it manufactures. In the past, warranty claims have been made on 2% of all appliances sold and have cost Shaw an average of $10 per claim to repair. During years D and E, the following transactions and events occur: Year D Year E Appliance sales 10k units 12k units Warranty costs incurred $1800 $2200 On 1/1/year D. Estimated Warranty Liability was $4000. Assuming Shaw uses the usual accrual method, provide the following amounts: a. Year D warranty expense. b. Year E warranty expense. c. 12/31/D balance in Estimated Warranty Liability. d. 12/31/E balance in Estimated Warranty Liability

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