Reference no: EM132431206

Question - Estimated Warranty Expense vs Actual Warranty Claims

4 Years Ago -

Estimated Warranty Expense 11,839

Actual Warranty Claims 12,122

3 Years Ago -

Estimated Warranty Expense 11,120

Actual Warranty Claims 13,070

2 Years Ago -

Estimated Warranty Expense 18,560

Actual Warranty Claims 21,660

1 Years Ago -

Estimated Warranty Expense 14,800

Actual Warranty Claims 17,660

Estimated Warranty Expense Percentage by Model

Lynx 4%

Puma 7%

Jag 6%

Current Year Sales by Model

Puma 60,000

Lynx 80,000

Jag 105,000

1. How much Total Estimated Warranty Expense does Arctica Report for the current year.

2. Record the Adjusting Entry at year-end of the current year to recognize warranty Expense.

3. A customer brings in a snowmobile for warranty Repairs on January 15 of the following Year and the replacement parts cost $700. Record The Journal entry for this repair.