In 2019, D Company began selling a new products that carried a two-year warranty against defects. The entity projected the estimated warranty cost as a percent of sales. First year of warranty 5% Second year of warranty 10% Sales and actual warranty repairs were: 2017 2018 2019 2020 Sales 5,000,000 8,000,000 9,000,000 10,000,00 Actual warranty repairs 500,000 700,000 800,000 850,000

Compute the following: 2018 2019 2020

a. Warranty expense __________ __________ ___________

b. Warranty Liability __________ __________ ____________