Answer:
$172,000
Explanation:
The total warranty expense reported in the current year is $189,000, which is recorded as an increase in warranty expense account.
The amount of $17,000 is recorded as an increase in warranty liability account. It is because this amount is not paid in this year but in subsequent years.
The remaining amount of $172,000, which is equal to $189,000 - $17,000, is the total amount of warranty costs that were paid during the year and is recorded as a decrease in cash account.
The accounting journal entries will be as follow:
Dr Warranty expense $189,000
Cr Warranty Liability $17,000
Cr Cash $172,000
