Question: Question 21 (5 points) VA - Stair Stepper, Inc. provides a two-year warranty on its products. Estimates are that 3% of sales will be returned

Question 21 (5 points) VA - Stair Stepper, Inc. provides a

Question 21 (5 points) VA - Stair Stepper, Inc. provides a two-year warranty on its products. Estimates are that 3% of sales will be returned in the year of sale and 5% the following year. Sales and actual warranty costs for SSI's first two years of operations were: Required: a. Determine the balances in the warranty expense account for 2016 and the estimated warranty liability account at the end of 2016. (3 marks) b. Determine the balances in the warranty expense account for 2017 and the estimated warranty liability account at the end of 2017. (2 marks)

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