[calvin85sg]

I need help with the following question. Any pointers is greatly appreciated.

Warranty expense. Woodmier Lawn Products introduced a new line of
Commercial sprinklers in 2002 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 2002 were
$2,500,000. Accordingly, the following entries relating to the contingency for
Warranty costs were recorded during the first year of selling the product:

Accrued liability and expense

Dr Warranty expense (2% × $2,500,000)... 50,000
Cr Estimated warranty liability... ………... 50,000

Actual expenditures (summary entry)

Dr Estimated warranty liability ……… 23,000
Cr Cash, wages payable, parts and supplies, etc... 23,000

In late 2003, the company’s claims experience was evaluated and it was determined that claims were more than expected –3% of sales rather than 2%.

Required:

1. Assuming sales of the sprinklers in 2003 were $3,600,000 and warranty expenditures
In 2009 totaled $88,000, prepare any journal entries related to the warranty.

2. Assuming sales of the sprinklers were discontinued after 2008, prepare any journal entry(s) in 2009 related to the warranty.

[calvin85sg]

Please note that the dates should be 2008 for the 1st paragraph

"Woodmier Lawn Products introduced a new line of
Commercial sprinklers in 2008 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 2008 were $2,500,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:"

[morgaine300]

#1, using 3% instead of 2%, figure out what that number should be, and then the entries are exactly the same as how they already did it in the given information.

#2, not sure what's going on cause you're changing dates around and they don't match w/in the problem. You also need to get #1 done first anyway.