a.) I calculated the warranty liability for the shipping costs at December 31, 2020 as such: 30(0.10)(60) = 180

b.) Debited to Warranty Expense, Credited to Warranty Liability.

c.) Calculated warranty expense for 2021: 40(0.1)(60) = 240

Debited 240 to Warranty Expense, Credited 240 to Warranty Liability

210+55 = 265

Debited Warranty Liability 265, Credited Repair Parts (maybe it's cash? or, I don't know!)

d.) Cookie Creations warranty liability, dec. 31 2021: Opening liability: 180, Current Year Liability: 240, 180+240 = 420 total liability. Subtracted 265, 420-265 = 155 for Cookie creation' warranty liability at december 31, 2021.

Since it seems that there is no balance to write off for 2021, I think I debit and credit 0 on the last part.

I wanted to get clarification on my current work before I submitted. Please and Thank You!

Cookie Creations 11 a-e Recall that Cookie Creations sells fine European mixers that it purchases from Kzinski Supply Co. Kzinski warrants the mixers to be free of defects in material and workmanship for a period of one year from the date of original purchase. If the mixer has such a defect, Kzinski will repair or replace the mixer free of charge for parts and labor. The product must be shipped prepaid to an authorized Kzinski service center. The cost to ship the mixer is paid by the consumer. The cost to return the product to the consumer is paid by Kzinski. The authorized service center is located in Boston. Because Cookie Creations values serving its customers, it pays the shipping to Boston for any mixers needing repair under Kzinski's warranty terms. Based on past experience, Kzinski has found that approximately 10% of mixers are returned for repair or replacement. The average cost to ship a mixer to Boston is $60. The following transactions take place in 2020 and 2021 1. A total of 30 mixers are sold in 2020. 2. Four of the mixers sold in 2020 are returned for repair in 2021. The total shipping cost for returning these four mixers to Boston is $210. 3. A total of 40 mixers are sold in 2021 4. Two of the mixers sold in 2021 are returned for repair in 2021. The total shipping cost for returning these two mixers to Boston is $55. Calculate Cookie Creations warranty liability for the shipping costs at December 31, 2020 Warranty liability 180 Record the estimated warranty liability at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 180 Dec. 31 Warranty Expense 180 Warranty Liability SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation 240 Warranty Expense 240 Warranty Liability To record shipment of 2020.) Warranty Liability 265 265 Repair Parts To record shipment of 2021.) Calculate Cookie Creations' warranty liability at December 31, 2021. (Hint: Note that there is no liability outstanding for the mixers sold in 2020. The one-year warranty period has expired.) Warranty liability 155 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO T EXT Record the estimated warranty liability at December 31, 2021. (Hint: Similar to accounting for bad debts, consider any existing balance in the warranty liability account when you prepare your entry. You will find it helpful to prepare a general ledger account for the warranty liability and to post the above transactions.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Warranty Expense Warranty Liability