Date Account Titles (To record honouring warranty contracts.) Debit Credit (To accrue warranty expense.) (To record honouring warranty contracts.) Your answer is correct. Calculate the warranty expense for each year and warranty liability at the end of each year. On January 1, 2022, Carla Vista Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $36 per unit. Sales and warranty figures for the three years ended December 31 are as follows: (To record honouring warranty contracts.) (To accrue warranty expense.) (To record honouring warranty contracts.) (To accrue warranty expense.)