eBook Show Me How Warranties Kim's Athletics sells bicycles and other sports and athletic equipment. Sales and expected warranty claims for the year are as follows: Expected Warranty Claims Item Unit Sales for Warranty Period Cost per Claim Mountain bikes Racing bikes 1,200 300 Snowboards 2,300 1 claim per 100 sold 10 claims per 100 sold 4 claims per 100 sold $64 35 40 Required: 1. Prepare the entry to record warranty expense for Kim's for the year. If an amount box does not require an entry, feave it blank. Dec. 31 (Record warranty expense) 38 2. Conceptual Connection: Why does Kim's have to record a liability for future warranty claims? Warranties are amounts are Therefore, companies must record and a corresponding i if such contingent