During 20X0, the LaMothe Appliance Company had cash sales of $850,000. The company estimates that the cost of servicing products under warranty will average 3% of sales. Requirements 1. Prepare journal entries for sales revenue and the related warranty expense for 20X0. Assume all sales are for cash. 2. The liability for warranties was $13,500 at the beginning of 20X0. Expenditures (all in cash) to satisfy warranty claims during 20X0 were $22,200, of which $4,800 was for products sold in 20X0. Prepare the journal entry for the warranty expenditures. 3. Compute the balance in the Liability for Warranties account at the end of 20X0. Requirement 1. Prepare journal entries for sales revenue and the related warranty expense for 20X0. Assume all sales are for cash. (Record debits first, then credits. Explanations are not required.) Prepare separate entries. Begin with the journal entry for sales revenue. Date Accounts Prepare the journal entry for warranty expense for 20X0. Date Accounts Debit Credit Debit Credit Requirement 2. The liability for warranties was $13,500 at the beginning of 20X0. Expenditures (all in cash) to satisfy warranty claims during 20X0 were $22,200, of which $4,800 was for products sold in 20X0. Prepare the journal entry for the warranty expenditures. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Requirement 3. Compute the balance in the Liability for Warranties account at the end of 20X0. First select the formula, then compute the balance. (Abbreviations used: Beg. = Beginning balance, End. = Ending balance, Liab. = Liabilities.) + + = Liabilities for warranties - End