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Business, 17.10.2019 20:20 raquelqueengucci25

Woodmier lawn products introduced a new line of commercial sprinklers in 2017 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 2017 were $2.5 million. accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:

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