Kind of stuck on this one with the JE. Need to know if I am on the right track with this problem. Please help

Thomas sells products that carry a 6-month manufacturers warranty. Customers have the opportunity at the time of purchase to also buy a 3 year extended warranty for an additional charge of $100. Thomas sold 1,000 units this year for $2,000 each. For this years sales, Thomas estimates the 6-month warranty costs to be 10% of sales. Thomas incurred $40,000 servicing these warranties. Thomas estimates that the service cost on the extended warranties will be $70 per warranty. During the first year, Thomas sold 200 extended warranties and incurred costs of $2,000 to service extended warranties. During the second year, Thomas incurred $12,000 servicing the extended warranty.

First Year
Cash	2,000,000
	Sales Revenue	2,000,000
Warranty Expense	200,000		2,000,000x10%
	Estimated Warranty Liability	200,000
Warranty Expense	40,000
	Service Expense	40,000
Warranty Expense	14,000		70x200
	Estimated Warranty Liability	14,000
Warranty Expense	2,000
	Service Expense	2,000
Second Year
Estimated Warranty Liability	4,000		12,000/3
	Cash	4,000