maverick company sold 1,000 rollomatics on october 1, 2017, at total price of $6,000,000, with a warranty guarantee that the product was free of defects. the cost of the rollomatics is $4,000,000. the term of this assurance warranty is 2 years, with an estimated cost of $80,000. in addition, maverick sold extended warranties related to 400 rollomatics for 3 years beyond the 2-year period for $18,000. on november 22, 2017, maverick incurred labor costs of $3,000 and part costs of $25,000 related to the assurance warranties. maverick prepares financial statements on december 31, 2017. it estimates that its future assurance warranty costs will total $44,000 at december 31, 2017.
