elextbook ent CALCULATOR FULLSCREEN PRINTER VERSION BACK NEXT Problem 13-12 Windsor Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Windsor uses two sales promotion techniques-warranties and premiums-to attract customers. Musical instruments and sound equipment are sold with a one-year warranty for replacement of parts and abor. The estimated warranty cost based on past experience, s 296 of sales The premium is offered on the recorded and sheet music. Customersreceive a coupon for each do ar spent on recorded m ?? rnee muse stomas mar exchange 200 coupons and $20 for an MP3 player. Windsor pays $31 for each player and estimates that 50% of the coupons given to customers will be redeemed. Windsor's total sales for 2017 were $7,152,000-$6,152,000 from musical instruments and sound reproduction equipment and $1,000,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $154,100 during 2017. A total of 6,470 players used in the premium program were purchased during the year and there were 1,108,000 coupons redeemed in 2017. The balances in the accounts related to warranties and premiums on January 1, 2017, were as shown below. Inventory of Premiums Premium Liability Warranty Liability $39,720 42,510 125,600 Windsor Music Emporium is preparing its financial statements for the year ended December 31, 2017. Determine the amounts that will be shown on the 2017 financial statements for the following. (Round answers to o decimal places, e.g. 125.) (a) Warranty Expense (b) Warranty Liability (c) Premium Expenses (d) Inventory of Premiums Reserve