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Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer's defects. Because this was the first

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Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer's defects. Because this was the first product for which the company offered a warranty. trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 2% of sales. Sales of the sprinklers in 2017 were $2,500,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product Accrued liability and expense Warranty expense (2% x $2,500,000) 50,000 Estimated warranty liability 50,000 Actual expenditures (summary entry) Estimated warranty liability 23,e00 Cash, wages payable, parts and supplies, etc. 23,800 In late 2018, the mpany's claims experience was evaluated and it was determined that claims were far more than expected sales rather than 2%. 3% of Required: 1. Assuming sales of the sprinklers in 2018 were $3,600,000 and warranty expenditures in 2018 totaled $88,000, prepare any journal entries related to the warranty 2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entries in 2018 related to the warranty Complete this question by entering your answers in the tabs below Required Required 2 Assuming sales of the sprinklers in 2018 were $3,600,000 and warranty expenditures in 2018 totaled $88,000, prepare any journal entries related to the warranty. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Assuming sales of the sprinklers in 2018 were $3,600,000 and warranty expenditures in 2018 totaled $88,000, prepare any journal entries related to the warranty. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the accrued liability and expense. Note: Enter debits before credits. General Journal Debit Clear entry View general journal Record entry K Prev ere to search View transaction list Journal entry worksheet Record the actual expenditures. Note: Enter debits before credits. Event General Journal ebil Credit 2 Record entry Clear entry View general journal

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