Erin company provides a 3-year warranty on all of the products it sells. Sales for the

Erin Company provides a 3 year warranty on all of the products it sells. Sales for the current year were $3,000,000 and it is estimated that the warranty expense is equal to 5% of sales. The warranty liability at the beginning of the year was $165,000 and actual costs incurred to service warranties during the year amounted to $130,000. (a) The journal entry to record warranty expense is: Dr. Cr. (b) The amount of the warranty liability at the end of the year is equaho $ equahos