A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 5% of sales. During the month of June, the company performed warranty work and used $10,000 worth of parts to do the warranty work. Sales for June amounted to $450,000. 1. Record the warranty expense for the month of June. 2. Record the costs of the warranty work completed in June. 3. If the Estimated Warranty Liability account had a credit balance of $11,000 on May 31, what is the account balance at June 30?

		Debit	Credit
1
2

3.