S11-3 Accounting for warranty expense and warranty payable Toyota, the car manufacturer, guarantees its vehicles for three years or 100 000 kilometres, whichever comes first. Suppose Toyota's experience indicates that it can expect warranty costs to equal 3% of sales. Assume that Thomson Toyota in Adelaide makes sales of Toyota Corollas totalling $500 000 during 2016, its first year of operations. The business receives cash for 30% of the sales and loans receivable for the remainder. Payments to satisfy customer warranty claims totalled $10000 during 2016. (These payments are not reimbursed by Toyota.) Requirements 1 Record the sales, warranty expense and warranty payments for Thomson Toyota. 2 Post to the Estimated warranty payable T-account. At the end of 2016, how much in warranty costs does Thomson Toyota still expect to pay?

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Hi, I think I have part 1 correct as listed below, but I need help with the second part with the Accrued Warranty Payable T account in Question 2.

Concord Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-4% of sales; and third year after sale-5% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales Warranty Expenditures 2021 $750,000 $ 15,900 2022 1,010,000 46, 000 2023 1,017, 000 80,000 (a) Calculate the amount that Concord should report as warranty expense on its 2023 income statement and as a warranty liability on its December 31, 2023 SFP using the assurance - type warranty (expense - based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. Warranty expense Warranty liability