- B D E F . JK 8. (6 points) A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 5% of sales. Sales for June were $450,000. During the month of July, the company performed warranty work and used $11,000 of parts to perform the warranty work. 1. Record the warranty expense for the month of June. 2. Record the costs of the warranty work completed in July. You may omit explanations. Show your calculations below. Date Account Titles and Explanations + Debit Credit