CMI sells a product that carries a three year warranty Estimated warranty costs as percentage of sales are 1 in the first year of warranty, 2 in the second, and 2 in the third Sales and actual warranty claims for the years ended December 31, 2017 through 2019 are as follows Warranty 2017 2018 2019 Sales $150,000 180,000 100,000 Actual Warranty Claims $3,250 6 250 5,000 1 What is the warranty expense in 2018 Show your work $3250 3 Is warranty a contingent liability Explain 6250 $ 5,000 liability D 75002 (150 3250 1000 E 9500 5,000 $250 2 Suppose the beginning balance in the warranty reserve liability account on January 1, 2017 was $4,000 What amount should CMI report as its warranty liability on its December 31, 2019, balance sheet Show your work CMI sells a product that carries a three year warranty Estimated warranty costs as percentage of sales are 1 in the first year of warranty, 2 in the second, and 2 in the third Sales and actual warranty claims for the years ended December 31, 2017 through 2019 are as follows 1 What is the warranty expense in 2018 Show your work 2 Suppose the beginning balance in the warranty reserve fiability account on January 1, 2017 was $4,000 What amount should CMI report as its warranty liability on its December 31,2019 balance sheet Show your work 3 Is warranty a contingent liability Explain

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CMI sells a product that carries a three year warranty  Estimated warranty costs as percentage of sales are 1  in the first year of warranty, 2  in the second, and 2  in the third  Sales and actual warranty claims for the years ended December 31, 2017 through 2019 are as follows  Warranty 2017 2018 2019 Sales $150,000 180,000 100,000 Actual Warranty Claims $3,250 6 250 5,000 1  What is the warranty expense in 2018  Show your work  $3250 3  Is warranty a contingent liability  Explain  6250 $ 5,000 liability D 75002 (150 3250 1000 E 9500 5,000 $250 2  Suppose the beginning balance in the warranty reserve liability account on January 1, 2017 was $4,000  What amount should CMI report as its warranty liability on its December 31, 2019, balance sheet  Show your work  CMI sells a product that carries a three year warranty  Estimated warranty costs as percentage of sales are 1  in the first year of warranty, 2  in the second, and 2  in the third  Sales and actual warranty claims for the years ended December 31, 2017 through 2019 are as follows  1  What is the warranty expense in 2018   Show your work  2  Suppose the beginning balance in the warranty reserve fiability account on January 1, 2017 was $4,000  What amount should CMI report as its warranty liability on its December 31,2019  balance sheet  Show your work  3  Is warranty a contingent liability  Explain

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CMI sells a product that carries a three-year warranty. Estimated warranty costs as percentage of sales are 1% in the first year of warranty, 2%

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