intermediate accounting

b) As of December 31st, A-Grade Computers has not had to perform any repairs under warranty. The company estimates that 5% of all computers sold will eventually require warranty repairs and each repair will cost $100 on average. Record the December 31 st adjusting journal entry for the accrual of warranty liabilities based on the estimated costs of 10 future warranty expenses. During January of 2019, A-Grade Computers incurred $4,400 worth of warranty costs related to computers sold in December. $3,000 of these costs are attributable to replacement parts and the other $1,400 is attributable to labor costs. Record the January 31 st, entry for these 16 actual warranty expenses. Using the information provided above, determine the remaining estimated warranty liability for computers sold in December. Estimated Warranty Balance