Revise your worksheet based on these new assumptions and then answer the questions that follow.

Number of units sold		44,000
Estimated units needing warranty		6	%
Estimated warranty cost per unit	$	290
Portion of units fixed in current year		0	%
Alternative:
Portion of units fixed in current year		40	%

Required:
1a). What are the revised amount of estimated warranty units and future warranty costs?

Units:

Future Warranty Costs:

1b). Prepare the journal entry to record the warranty expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- Prepare the year-end adjusting entry for estimated warranty costs, assuming all associated costs will occur in the future.

- Prepare the year-end adjusting entry for estimated warranty costs, assuming 40% of the associated costs will occur in the future.