Benson Inc. extends a lifetime warranty on all hockey sticks sold. Using past experience, the company estimates that 3% of hockey sticks sold will be returned and replaced at an average cost of $10 per hockey stick. On January 1, 2014, the balance in Benson Inc.'s Estimated Warranty Liability account was $6,500. During 2014, sales totalled $580,000 or 14,500 hockey sticks. The actual number of hockey sticks returned and replaced was 430. (1) Prepare the following journal entries : Estimated warranty liabilities for units sold during 2014. Use the date December 31. Replacement of the units 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 - (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