Problem $6$: Chapter $12-$Waranties $(9$ points$)$

Merida Dquipment Company sells competitive archery equipment for $$3,500$ each and, included in the

purchase of all equipment sets is a five$-$year waremty that requires Merida Equigment Company to

replace defective parts. Based on past experience, the company has estimated the total $5$year weryenty

costs as $$75$ for parts and $$120$ for labor per set related to defects. During $2017,$ the company sold $870$

archery sets. Assume sales all occur on December $31,2017$ and the invertony cost on the archery sets is

$$2,700$ per set

In $2018,$ Merida Equipment Company incured actual wareinty costs rehted to defects on $2017$ archeny

set sates of $$16,000$ in parts and $$18,200$ in labor.

Instructions:

$7\mathrm{.}1$: $(1$ pt$)$ What type of wereenty is Merida Equipment Company offering?

$72$: $(5ptb)$ Record all necessary joumal entries for the sales of archery cquipment in $2017.$

$73$: $(3$ pts$)$ Becord any negessagy joumal contyy$($es$)$ in $2018$ related to the wamenty$-$