Warranties Clearview Company manufactures and sells high-quality television sets. The most popular line sells for $950 each and is accompanied by a three-year warranty to repair, free of charge, any defective unit. Average costs to repair each defective unit will be $80 for replacement parts and $70 for labor. Clearview estimates that warranty costs of $31,200 will be incurred during 2017. The company actually sold 1,600 television sets and incurred replacement part costs of $8,700 and labor costs of $13,400 during the year. The adjusted 2017 ending balance in the Estimated Liability for Warranties account is $25,300. Required: 1. How many defective units from this year's sales does Clearview Company estimate will be returned for repair? units 2. What percentage of sales does Clearview Company estimate will be returned for repair? % of sales 3. If Clearview's actual warranty costs incurred during 2018 are significantly higher than the estimated liability recorded at the end of 2017, what should the company do?

\$13,409 dering the yeat the edjunted 2017 ending balasce in the Estmated Uabicy for Werranter accecurt is 125,709 . Hequired: 1. Hew nany defective uniti fom this year's sales doen Cearviow Congant estinite will be returned for repar? inis: 2. What percencape of seles dbei Cleanew Company estimate wa be rehmed for repair? 4h of sales 3. If Clearview's actual warranly cests incured during 201a are signincanthy higher then the estimated labity recorded at the end of 2017 , whas thosid the eompany do