Use the following information for the next two questions: On…

Use the following information for the next two questions: On April 1, 2022, Brecken’s Art Co. consigned 80 prints of popular painting, costing $50 each, to Grayson’s Market.  On October 31, Grayson’s Market. reported that 60 prints had been sold for $325 each.  Grayson’s Market remitted the appropriate amount due after deducting a commission of 5% of sales.

Chase Corporation sold 11,000 units of a new product for $70…

Chase Corporation sold 11,000 units of a new product for $70/unit during 2023. The sales price included a 3-year warranty to cover any defects on the product.  Management at Chase Corporation estimates total warranty expenses to be 7% of sales dollars.  Assuming actual warranty expenditures related to this product were $19,000 in 2023, what amount of warranty expense will Chase Corporation record on their 2023 income statement?