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Group Five Manufacturers Inc. makes a monitoring device for seniors to track their whereabouts and...

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Accounting

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Group Five Manufacturers Inc. makes a monitoring device for seniors to track their whereabouts and enable their caregivers to track where they are at any time. This is a very useful device, especially in the case of seniors who suffer from dementia. The company sells the product for $700 plus HST of 13%. The company provides a lifetime warranty against defective manufacture of its product. In 2015, the company sold 450,000 units of its product with an expectation, based on experience, that two percent of the units would be returned for repair. Each repair would cost the company about $250 and take three days before the product could be returned to its owner. At the beginning of 2015, the Warranty Liability Account was $1,984,372. During 2015, the company spent $1,875,000 on warranty repairs. Required: 1. Using T-Accounts, record the entries necessary to account for Warranty issues for the company during 2015. Label your entries so that they can be easily followed and show how each number was calculated

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