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In 2 0 2 4 , Carla Vista Co . introduced a new line of machines that carry a three - year warranty against manufacturer's

In 2024, Carla Vista Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of the sale, 3% in the year after the sale, and 4% in the second year after the sale. Sales revenue and actual warranty expenditures for the first three year period were as follows: (assume the accrual method)
\table[[,Sales Revenue,\table[[Actual],[Warranty],[Expenditures]]],[2024,$1598000,$41000
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