Das Medical introduced a new implant that carries a fiveyear warranty against

manufacturers defects. Based on industry experience with similar product introductions, warranty

costs are expected to approximate of sales. Sales were $ million and actual warranty

expenditures were $ for the first year of selling the product.

a Record the journal entry for the actual warranty expenditures assume the company paid

cash to a rd party repair shop

b Record the journal entry to estimate additional warranty expense at year end.