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Company 4 . The Company in 2 0 2 3 initiated a new warranty program to complement the existing warranty that is part of the

Company 4. The Company in 2023 initiated a new warranty program to complement the existing warranty that is part of the selling price of the products sold. The new program covers repairs (parts and labour) that are beyond what is provided in the existing product warranty. In 2023,6,050 customers purchased the two-year extended warranty at a price of $300 per contract (included in the revenue amount reported on the Statement of Comprehensive Income). During 2023, the Company incurred costs of $427,100(included in sales and marketing expense). In establishing the price of the extended warranty, the Company anticipated incurring costs of approximately $240 per contract with the expected costs to be incurred predominantly in the 2nd year of the contract. Correct any mistakes made by the companny and any jounrla entries associated with those mistakes or ay other journal/adjusting entries in general.

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