Question:

1. Johnson company sells a blender for $40 that costs them $16. The company provides a 5 year warranty which they will replace any blenders that quit functioning for the customers. For sales in 2021, they anticipate 1,800 blenders will be returned in for replacement. Make the journal entry for 2021 warranty expense.

2. During 2021, 1,300 blenders quit working and had to be replaced by Johnson.