Exercise 8-70 Warranties Merleau Entertainment sells televisions and other sound and video equipment. Sales and expected warranty claims for the year are as follows: Item Unit Sales Cost per Claim Televisions 2,500 Expected Warranty Claims for Warranty Period 2 claims per 100 sold 5 claims per 100 sold 1 claim per 100 sold $45 DVD 360 15 Speakers 700 25 Required: 1. Prepare the entry to record warranty expense for Merleau Entertainment for the year. Dec. 31 Warranty Expense 2,695 Warranty Liability 2,695 (Record warranty expense) Feedback 2. CONCEPTUAL CONNECTION: Why does Merleau have to record a liability for future warranty claims? The input in the box below will not be graded, but may be reviewed and considered by your instructor