b. Record the replacement of the units returned in 2023 (use a date of December 31). Journal entry worksheet 1 Record the replacement of units under warranty. c. Calculate the balance in the Estimated Warranty Liability account at December 31, 2023. Balance in the Estmated Wartanty Liatility account. d. What is the warranty expense that will appear on the income statement for the year ended December 31, 2023? Warranty expense Shefford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that 0.25% of units sold will be returned and require replacement at an average cost of $105 per unit. On January 1,2023 , the balance in Shefford's Estimated Warranty Liability account was $17,400, During 2023 , sales totalled $3.780,000 or 20,800 units. The actual number of units returned and replaced was 53. Required: a. Prepare the entry to estimate warranty liabilities based on the units sold for 2023 . Assume the adjustment is made on December 31 . Journal entry worksheet