Question

Tableau DA 9-2: Exercise, Warranty expense and llability computations and entries LO P4 We are hired as consultants to assist Arctica Co. in accounting for its warranty expenses. Arctica offers a one-year warran parts on each snowmobile it sells. The following Tableau Dashboard is provided to assist us Estimated Warranty Expense vs. Actual Warranty Claims $25,000 $20,000 Actual Warranty Claims Estimated Warranty Expense $15,000 $10,000 4 Years Ago Actual Warranty Claims: $12,122 $5,000 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Current Year Sales by Model Estimated Warranty Expense Percentage by Model Prev 1 of 1 Ned ere to search

Answer 1

1.
Estimated Warranty Expense

Lynx	$            3,200	=80000*4%
Puma	$            4,200	=60000*7%
Jag	$            6,300	=105000*6%
Total Estimated Warranty Expense	$         13,700

2.

Date	Account Titles	Debit	Credit
Dec-31	Warranty Expense	$         13,700
	Accrued Warranty Liability		$          13,700
	(Recorded Estimated warranty liability)

3.

Date	Account Titles	Debit	Credit
Jan-15	Accrued Warranty Liability	$               700
	Inventory/Supplies		$                700
	(Parts replaced in warranty)