Estimated Warranty Liability Savory Co. sold $244,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On August 15, a customer required a $265 part replacement, plus $250 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. Jan. 31 - (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. Aug. 15