Instructions Clean Corporation manufactures and sells dishwashers. Clean provides all customers with a two year warranty guaranteeing to repair, free of charge, any defects reported during this time period. During the year, it sold 110,000 dishwashers for $325 each. Analysis of past warranty records indicates that 14% of all sales will be returned for repair within the warranty period. Clean expects to incur expenditures of $14 to repair each dishwasher. The account Estimated Liability for Warranties had a balance of $100,000 on January 1. Clean incurred $150,000 in actual expenditures during the year. Required: Prepare all journal entries necessary to record the events related to the warranty transactions during the year. Determine the adjusted ending balance in the Estimated Liability for Warranties account. General Journal General Journal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. GENERAL JOURNAL DATE ACCOUNT TITLE Jan. 1 Warranty Expense 2 Estimated Liability for Warranties 3 Estimated Liability for Warranties 4 5 6 Cash Shaded cells have feedback. PAGE 1 Score: 38/104 IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 215,600.00 215,600.00 Points: 9.13/25 Chart of Accounts CHART OF ACCOUNTS Clean Corporation General Ledger Final Question Shaded cells have feedback. 2. Determine the adjusted ending balance in the Estimated Liability for Warranties account. Ending Balance = $ Points: 0/1 ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 154 Supplies 174 Equipment 179 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 253 Estimated Liability for Warranties 261 Income Taxes Payable REVENUE 411 Sales EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense 525 Warranty Expense 532 Utilities Expense 533 Insurance Expense 534 Rent Expense 537 Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense Feedback Check My Work Set up T account for Estimated Liability for Warranties account, start with the beginning balance, record the current year transactions and calculate ending balance. EQUITY 311 Capital Stock 331 Retained Earnings