a company provides three year warranty with their products. they expect to replace one of every ten products sold under this warranty.

in 2018, they sold 1,000 products for $500 and they spend 13,200 on replacing the "damaged" products. the cost to replace a product is 400 (COGS) .

prepare all journal entries during 2018 for the sale and related warranty expense (assume that 2018 was the first year that the products were sold)