Ivanhoe Ltd$.$ sells computers, computer accessories, and software. On its computer sales, the company provides a onemonth warranty that is included in the cost of the computer. Claims under the warranties vary from replacing defective items to providing customers with refunds if they choose. During $2024,$ the estimated costs related to the one$-$month warranties was $\backslash (\backslash$$ $44,000\backslash ),$ of which $\backslash (\backslash$$ $39,600\backslash )$ had been incurred before year end $(\backslash (\backslash$$ $33,000\backslash )$ for replacement items and $\backslash$$$6,600$ in refunds$).$

For an additional charge of $\backslash$$$110,$ Computers Galore also offers extended warranty coverage for two years on its computers. This amount is expected to cover the costs associated with the extended warranties. During $2024,$ Computers Galore sold $880$ two$-$year warranties. The costs incurred during the year for replacements under these warranties amounted to $\backslash (\backslash$$ $34,100\backslash ).$ Based on experience, the company estimates that its total warranty costs over the two$-$year coverage period will be $\backslash (\backslash$$ $66,000\backslash ),$ which it expects will occur evenly over the warranty period.