Blossom Motors sells remote control airplane engines, which carry a oneyear warranty. If a

customer brings in a defective engine, he replaces the engine with a new one from his inventory.

Blossom estimates that of units sold will be defective. As at January the Warranty Liability

account had a credit balance of $

Blossom provided the following information for his year end of December

Cost per engine $

Total sales units

Actual warranty costs $

Calculate the estimated warranty expense for the year.

Estimated warranty expense $

prepare the journal entry to record the estimated warranty costs for the year

Prepare the journal entry to record the actual warranty costs for the year

Calculate the ending balance in the warranty liability account at the end of the year.

Ending balance in warranty liability account

If Blossom fixed an engine himself instead of replacing it with a new engine, what account would be credited instead of Repair Parts Inventory?

if blossom fixed an engine himself instead of replacing it with a new engine, the blank account would be creadited instead of repair parts inventory account.

Salaries Exepense, wage payable, warranty expense, warranty liability, warranty repair inventory