A company sells its product with a six - month parts warranty . Warranty costs are estimated to be 6 % of sales . Sales totaled $ 450,000 for the month of June , 2022. On June 16 , 2022 , the company performed warranty work and used $ 12,000 in parts .

1 Prepare the journal entry to record the warranty expense . Use June 30 , 2022 as the date . 2 Prepare the journal entry to record the warranty work that occurred in June 2022. 3 Calculate the balance in the Estimated Warranty Liability account at June 30 , 2022 , assuming the account had a credit balance of $ 10,000 at May 31 , 2022.