ACC Ludwig Inc. extends a lifetime warranty on all flashlights sold. Using past experience, the company estimates that 5% of flashlights sold will be returned sified and replaced at an average cost of $13 per flashlight. On January 1, 2014, the balance in Ludwig Inc.'s Estimated Warranty Liability account was $6,250. ang to During 2014, sales totalled $529,000 or 11,500 flashlights. The actual number of flashlights returned and replaced was 532. ug Cor d Rec (1) Prepare the following journal entries: Estimated warranty liabilities for units sold during 2014. Use the date December 31. Replacement of the units wed As returned in 2014 (use the date December 31). Enter an appropriate description, and enter the dates in the format dd/mmm (ie. 15/Jan). General Journal Page Gj1 Date Account/Explanation F Debit Credit and Finan ment of cial Sta ietorsh eadShe arse (2) Calculate the balance in the Estimated Warranty Liability account at December 31, 2014, and the Warranty Expense that will appear on the income statement for the year-ended December 31, 2014. Balance of Estimated Warranty Liability at Dec. 31? Warranty Expense as it appears on the Income Statement