a new product introduced by arthur corp. carries a two-year warranty against defects. the estimated warranty costs related to sales revenue are as follows: year of sale – 3% year after sale – 5% sales and actual warranty expenditures for the years ended 12/31/20a1 and 12/31/20a2 are as follows: year sales actual warranty expenditures 20a1 $ 400,000 $ 10,000 20a2 500,000 $ 33,000 what amount should arthur report as warranty expense for the year ended 12/31/20a2 and as estimated warranty liability at 12/31/20a2? warranty expense est. warranty liability
