Exercise 10-15 Estimated warranties L04 Shefford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that 0.75% of units sold will be returned and require replacement at an average cost of $101 per unit. On January 1, 2020, the balance in Shefford's Estimated Warranty Liability account was $17,000. During 2020 soles totalled $3,740,000 or 12,400 units. The actual number of units returned and replaced was 94. Required: a Prepare the entry to estimate warranty liabilities based on the units sold for 2020. Assume the adjustment is made on December 31 View transaction list Journal entry worksheet 1 Record the estimated warranty liability, Fotos Enter debits balore credit, Date General Journal Debit Credit Dec 31, 2020 Record the replacement of units under warranty. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2020 Record entry Clear entry View general journal c. Calculate the balance in the Estimated Warranty Liability account at December 31, 2020 Balance in the Estimated Warranty Liability account d. What is the warranty expense that will appear on the income statement for the year ended December 31, 2020? Warranty expense