Apple Inc. sold iPhones for $1,000,000 cash, which cost $600,000. The iPhones had a warranty, and Apple Inc. estimates warranty expenses at 5% of sales. Requirements: a. Prepare the journal entry to record the sale of iPhones by Apple Inc. b. Record the cost of goods sold. c. Estimate the warranty expense. d. Determine the total gross profit for the sale. e. Analyze the impact of the warranty expense on the income statement and balance sheet.