5. During April, Koduck Cameras sold 150 instant cameras for $100 each. Each camera had cost Koduck $60 to manufacture, and carried a one-year warranty. If 4% typically need to be replaced over the warranty period, and two are actually replaced during April, for what amount in April should Koduck debit Warranty Expense?

a. $600 c. $240

b. $360 d. $120

I just put #5 there for question #6. i already have the answer for it.

6. Refer to number 5 above. The journal entry to be recorded when two of the units were actually replaced during the month would include:

a. a credit to Cash for $200

b. a debit to Estimated Warranty Liability for $120

c. a debit to Warranty Expense for $120

d. a credit to Inventory for $200