6 2 points Ask 10 Brief Exercise 8-11 (Algo) Record warranty liability (LO8-5) Cloudy introduces a new compact music player that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 1% of sales. By the end of the first year of selling the product, total sales are $29 million, and actual warranty expenditures are $100,000. Record the adjusting entry for the remaining expected future warranty costs as of December 31, the end of the reporting period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet References Record the adjusting entry for the remaining expected future warranty costs as of December 31, the end of the reporting period. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Warranty Expense 290,000 Warranty Liability 190,000 No Journal Entry Required 100,000 Sales Tax Payable