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For the current year, a company provides the following information related to the sale of...

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Accounting

For the current year, a company provides the following information related to the sale of products that come with a 2-year warranty against manufacturer's defects.
Number of units sold 40,000
Estimated units needing repairs 5%
Estimated repair cost per unit $80
Required:
Calculate the total number of units expected to require warranty repairs.
Calculate total estimated warranty costs.
Prepare the adjusting journal entry for estimated future warranty costs, assuming that the portion of units requiring repairs in the current year was: 0%
Prepare the adjusting journal entry for estimated future warranty costs, assuming that the portion of units requiring repairs in the current year was: 20%

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