GMC warranties the products that they sell. They estimate that warranty work needed in the year following the sale is 4% of sales while warranty work needed in the second year after the sale is estimated at 1% of sales.

Required:
A)Given that sales in 2010 are $2,547,000 and sales in 2011 are $2,893,000, calculate the warranty expense for 2010 and 2011 and record the entries.