A company sells computers, with an included two-year warranty for $2,000 each. During the current year, the company sells 15,000 computers. On the basis of past experience, the warranty costs are estimated to be $300 per computer. The actual warranty costs (paid in cash) by the company during the current year were $3,500,000. Prepare general journal entries to record the (A) estimated warranty expense and (B) warranty repair costs during current year.

A

B