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Please give thorough answer with explanation please and thank you in advance! 3 The Warranty Company offers a one year warranty for their product ABC.

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Please give thorough answer with explanation please and thank you in advance!

3 The Warranty Company offers a one year warranty for their product ABC. During the month of January 2020 the company sold 5,000 units. The annual expected product returns is 4.5%. The selling price per unit is $19 and the cost of each units is $11 The warranty will replace the damaged product at no charge to the customer. The actual return for January sales was 40 units. B Record the journal entry for the expected warranty returns. Record the journal entry for the actual warranty returns. Based on the above data explain if there is a possible quality iaaue for the product

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