uluciusure or accrual is g 2017, Blevert Co. introduced a new line of machines that carry a three-year 14 Durin warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows Ruiz retende lantea SalesActual Warranty Expenditures 2017 $400,000 7,000 2018 1,800,000 23,000 2019 2,000,000 100,000 $4,200,000 $130,000 alua What amount should Blevert report as warranty expense for 2017? A) $7,000 B) $37,000 C) $44,000 D) $51,000 15 Mingle, Inc., a manufacturer of cleani ing products, is preparing annual financial statements at December 31, 2018. products, the U.S. government has clearly indicated its intention of having Mingle bottles of that product sold in the that this recall would cost $800,000. What accounting accorded this situation? )expense and equity restriction of $800,000 Because of a recently proven health hazard in one of it s cleaning last six months. The management of Mingle estimates recognition, if any, should B) expense and contingent liability of $800,000 C) note disclosure only D) no recognition