A company sells its product subject to a warranty that covers the cost of parts for repairs during the three months after the date of sale. Warranty costs are estimated to be 10% of sales. During the month of March, the company performed warranty work and used $22,000 of parts to perform the warranty work. Sales for March were $900,000.

3. A company sells its product subject to a warranty that covers the cost of parts for repairs during the three months after the date of sale. Warranty costs are estimated to be 10% of sales. During the month of March, the company performed warranty work and used $22,000 of parts to perform the warranty work. Sales for March were $900,000. A. Record the warranty expense for the month of March. B. Record the costs of the warranty work completed in March. C. If the Estimated Warranty Liability account had a credit balance of $20,000 on February 28, what is the account balance at March 31? a