AWC = Current Year actual warranty cost!!!! **********

QUESTION:

Tableau DA 9-2: Exercise, Warranty expense and liability computations and entries LO P4 We are hired as consultants to assist Arctica Co. in accounting for its warranty expenses. Arctica offers a one-year warranty covering parts on each snowmobile it sells. The following Tableau Dashboard is provided to assist us. Estimated Warranty Expense vs. Actual Warranty Claims $25,000 $20,000 Actual Warranty Claims Estimated Warranty Expense $15,000 $10,000 $5,000 $0 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago AWC = Actual Warranty Cost EWE = Estimated Warranty Expense 4 Years Ago AWC = $12,122 EWE = $11,839 3 Years Ago AWC = $13,070 EWE = $11,120 2 Years Ago AWC = $21,660 EWE = $18,560 1 Years Ago AWC = $17,660 EWE = $14,800 Estimated Warranty Expense Percentage by Model Current Year Sales by Model 8% 7% 6% Puma 5% Jag 4% 3% 2% Lynx 1% 0 % Lynx Puma Jag CURRENT YEAR SALES BY MODEL PUMA = $60,000 JAG = $105,000 LYNX = $80,000 Required 1 Required 2 Required 3 How much total estimated warranty expense does Arctica report for the current year? Total estimated warranty expense Journal entry worksheet Journal entry worksheet