On January 2, 2019, Grando Company sells production equipment to Fargo Inc. for
$50,000. Grando includes a 2-
year assurance warranty service with the
sale of all its equipment. The
customer receives and pays for the
equipment on January 2, 2019. During 2019,
Grando incurs costs related to warranties of
Grando estimates that $500 of warrantyy
$850. At December 31, 2019,
should be recognized during 2019
costs will be incurred in the second year of
the warranty. How much warranty expenses