Under the expense warranty approach, give the entries to reflect the above transactions (accrual method) for 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020                                                                        Sales RevenueCash, Accrued PayrollInventoryWarranty ExpenseWarranty LiabilityAccounts Receivable                                                                              Sales RevenueAccounts ReceivableWarranty LiabilityWarranty ExpenseCash, Accrued PayrollInventory       (To record sale of computers)     2020                                                                        Warranty LiabilityAccounts ReceivableCash, Accrued PayrollInventorySales RevenueWarranty Expense                                                                              InventoryWarranty LiabilityCash, Accrued PayrollWarranty ExpenseAccounts ReceivableSales Revenue       (To record liability against warranty costs)     2021                                                                        Warranty ExpenseWarranty LiabilityInventorySales RevenueCash, Accrued PayrollAccounts Receivable                                                                              Sales RevenueInventoryWarranty ExpenseCash, Accrued PayrollWarranty LiabilityAccounts Receivable                                                                              Warranty LiabilitySales RevenueInventoryCash, Accrued PayrollWarranty ExpenseAccounts Receivable     2) The transactions of part (a) create what balance under current liabilities in the 2020 balance sheet? Current Liabilities-                                                                       Warranty ExpenseCash, Accrued PayrollSales RevenueWarranty LiabilityAccounts Receivable   $

During 2020, the Thomas Company began selling a new type of machine that carries a two-year assurance-type warranty against all defects. Based on past industry and company experience, estimated warranty costs should total $1,000 per machine sold. During 2020, sales and actual warranty expenditures were $5,000,000 (100 machines) and $44,000, respectively. Thomas uses the GAAP approach of accruing warranty expense (and the related liability) in the year of the sale.

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2023 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 2023 were $2.8 million. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: General Journal Accrued liability and expense Warranty expense (2% × $2,800,000) Warranty liability Actual expenditures (summary entry) Warranty liability Cash Debit 56,000 Required 1 Required 2 25,000 Credit 56,000 In late 2024, the company's claims experience was evaluated and it was determined that claims were far more than expected-3% of sales rather than 2%. View transaction list 25,000 Required: 1. Assuming…

On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Crane incurs costs related to warranties of $930. At December 31, 2020, Crane estimates that $620 of warranty costs will be incurred in the second year of the warranty.     Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

In 2020, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 5% of sales revenue. First-year sales of the heaters were $360,000. An evaluation of the company’s claims experience in late 2021 indicated that actual claims were less than expected—4% of sales rather than 5%. Assuming sales of the heaters in 2021 were $410,000 and warranty expenditures in 2021 totaled $14,400, what is the 2021 warranty expense?