Miley Equipment Company sells computers for 1500 each and also give each customer a 2 year warranty that requires the company to perform periodic services and to replace defective parts. During 2010, the company sold 700 computer. Based on past experience, the company has estimated the total 2 year warranty costs as $30 for parts and $60 for labor.
In 2011, Miley incurred actual warranty costs relative to 2010 computer sales of $10000 for parts and $ 18000 for labor.
a) Under the expense warranty treatment, give the entries to reflect the above transactions for 2010 and 2011
b)The transactions of part
c) create what balance under current liabilities in the 2010 balance sheet?