Chapter 18, Problem 18BE

To determine

Warranty expense: Sometimes goods are sold with warranty. This means the there is an assurance or guarantee from the maker of the goods to either repair or for the replacement of the goods if there is any fault in the goods. The warranty is for a stipulated period of time from the date of purchase.

Unearned warranty revenue: It is an amount that is recorded as liability before it is earned. It is said to be revenue once it is received in cash.

To determine the amount reported on December 31, 2017 for the following.

Given information: All the information related to T Company is provided in the question document.