10. On April 14, 2021, Darsh Co. sold $105,000 of audio equipment on account that had a cost of $82,000. All of Darsh's sales are covered by an unconditional 24-month replacement warranty. Historical data indicates that warranty costs average 2% of the cost of sales. On April 27, 2021, Darsh replaced audio equipment with a cost of $2,000 that was covered by warranty. Instructions a. Prepare the journal entry to record the estimated warranty liability for April. b. Prepare the entry to record the warranty expense incurred in April. c. Assuming the Estimated Warranty Liability account had a credit balance of $740 on April 1, 2021, calculate the balance at April 30, 2021 after the entries above were posted