Carl Inc offers a three-year limited warranty on their products. Warranty claims history is as follows: A new manufacturing process was implemented at the beginning of 2023, the ledger shows that all the warranty claims were expensed as incurred in 2020. There is no warranty accrual.
- The journal entries required to correct On Board’s ledger to reflect the recommended approach for the 2020 financial statements.
| Year | Total Sales | Current yr sale | One yr prior sale | 2 yr prior sale |
| 2023 | 3,842,000 | 14,670 | 28,540 | 60,450 |
| 2022 | 4,277,000 | 21,880 | 31,190 | 48,880 |
| 2021 | 3,628,000 | 18,230 | 34,000 | 39,950 |
| 2021 | 3,296,000 | 27,620 | 18,728 | 36,310 |
Requirements: 1 page
Don't use plagiarized sources. Get Your Custom Essay on
Warranty claims
Just from $13/Page