3.

The balance of the Estimated Warranty Liability account was $13,200 on January 1, 2013, and $18,600 on December 31, 2013. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 1.5% of sales, and sales during the year were $1,440,000.

Required:

a.

What amount of warranty expense will appear on the income statement for the year ended December 31, 2013?

Warranty Expense: $_____________________

b.	What were the actual costs of servicing products under warranty during the year? Actual warranty costs: $_________________