Game Stop sells gaming systems for $2,300 each. Using past experience, Game Stop estimates that 0.60% of units sold will be returned and require replacement at an average cost of $150 per gaming system. In 2022, Game Stop sold 60,000 gaming systems. The actual number of units returned and replaced was 300 in 2023.

Question: Record the estimated warranty liability for 2022.

Debit = Warranty Expense - 45,000, Warranty Expense - 54,000, Warranty Payable - 54,000, Warranty Payable - 45,000, Estimated Warranty Liability - 4,140, or Parts Inventory - 4,140

Credit = Warranty Expense - 45,000, Warranty Expense - 54,000, Warranty Payable - 54,000, Warranty Payable - 45,000, Estimated Warranty Liability - 4,140, or Parts Inventory - 4,140