2004 2003 2002
Net sales 3,649,734 3,4023,64 4,171,325
Accrued warranty, end of year 19,291 26,897 67,141
settlements made during the year 62,984 154,286 167,252
extended warranty deferred revenue, end of year 178,381 216,790 147,599
additions to extended warranty deferred revenue 93,839 163,265 138,188
during the year

1.compute the amount of warranty expense for 2003 and 2004
2.prepare journal entries to record both the warranty expense for 2004 and the payments make under the warranty during the year
3.compute the ratio of the warranty expense to net sales for the three years.assume that the warranty expense is $131,687for 2002.Has the ratio increased or decresed during the three-year period?Provide possible reasons for the changes in the ratio.
4.Based on the limited information available about the warranty exoense and settlements during these three years,should the company reduce the ratio of the warranty expense to net sales in future years?Explain
5.Compute the extended warranty revenue recognized during 2003 and 2004,and prepare the journal entry to record the revenue recognized in 2004.