During 2017, Cougar Manufacturing launched a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 3% within 12 months following sale and 5% in the second 12 months following sale. Sales and actual warranty claims for the years ended December 31, 2017 and 2018 were as follows:

Actual

Warranty

Sales Claims

2017 $400,000 $19,000

2018 500,000 32,000

$900,000 $51,000

Prepare the journal entry at December 31, 2017 for the accrual of warranty expenses.

Date	Account /Explanation	Debit	Credit

Prepare the journal entry at December 31, 2018 for the accrual of warranty expenses.

Date	Account /Explanation	Debit	Credit