Lynx Estimated Warranty Expense Percentage:

4%

PUma Estimated Warranty Expense Percentage:

7%

Jag Estimated Warranty Expense Percentage: 6%

Current year sales

Lynx 80000

Jag 105000

Puma 60000

Estimated warranty expense 4 years ago 11839, 3 years ago 11120, 2 years ago 18560 , 1 year ago 14800.

Actual warranty claims 4 years ago 12122, 3 years ago 13070, 2 years ago 21660, 1 year ago 17660.

1. How much total estimated warranty expense does Arctica report for the current year? 2. Record the adjusting entry at year-end of the current year to recognize warranty expense. 3. A customer brings in a snowmobile for warranty repairs on January 15 of the following year and the replacement parts cost $700. Record the journal entry for this repair.

Estimated Warranty Expense vs. Actual Warranty Claims $25,000 $20,000 Actual Warranty Claims Estimated Warranty Expense $15,000 $10,000 $5,000 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Estimated Warranty Expense Percentage by Model Current Year Sales by Model ---- Puma 5% ------ Jag Lynx Lynx Puma Jag