P3. Hawk, Inc. sold 10 heavy production machines with 2-year warranties for $250,000 each in 2017. It was estimated that the total warranty costs be $100,000 for the machines sold in 2017. Actual warranty costs incurred were

2017 2018 2019

$40,000 $35,000 $30,000

Instructions: Prepare any necessary journal entries for

1) The estimated total warranty costs on 12/31/2017,

2) The actual warranty costs incurred in 2017, 2018, and 2019.