Sadler Corporation produces lawnmowers. The lawnmowers come with a three-year warranty. During 2020, Sadler sold 20,000 lawnmowers that cost $4,800,000 to a manufacturer for $9,000,000 cash. Sadlers accountant estimates that 12 percent will need to be repaired at some point over the next three years at an average cost of $37 per lawnmower.

a. Make the journal entries to record the sale of the lawnmowers in 2020. (Remember there are 2 sets of journal entries to record a sale)

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b. Record warranty expense for 2020.

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c. During 2020, Sadler spends $18,000 to repair the lawnmowers. Record this.

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d. At the end of 2020, Sadlers accountant reevaluates the warranty estimates. The accountant believes that the actual warranty liability may be higher than her original estimates. She now believes that an additional $15,000 should be added. Make the necessary journal entry.

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e. During 2021, Sadler spends $28,000 to repair the lawnmowers. Record this.

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