the michael bolton company (MBPC) sold 750000 printers in 2018. MBPC includes an assurance and does not use modified cash basis method.MBPC estimates that 2% of the printer requires repair under two year warranty at an average cost of $225. during 2018 MBPC spent $1,875,000 to make warranty repairs.

1 prepare the journal entry to recognized revenue warranty expense for 2018

2. the balance in the estimate warranties liability account was 1,500,000 on jan 1 2018. what wii be balance sheet report for dec 2018