Warranty claims

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.

  1. 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

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