Show work for both questions.

28. Searches Company sells merchandise with a one year warranty. In 2007, sales consisted of 2,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2007 and 70% in 2008 . In the 2007 income statement, searches should show warranty expense of a. $25,000 b. $7,500 c. $17,500 d. $0 29. During September, Eltronics sold 100 radios for $50 each. Each radio cost Eltronics $30 to purchase, and carried a two-year warranty. If 5% typically need to be replaced over the warranty period and one is actually replaced during September, for what amount in September would Eltronics debit Product Warranty Expense? a. $50 b. $150 c. $30 d. $120