Item Warrant Kim's Atties sells bicycles and other sports and athletic equipment Sales and expected warranty claims for the year are as follows: Expected Warranty Claims Unit Sales for Warranty Period Cost per Claim Mountain bikes 800 1 claim per 100 sold $56 Racing bike 200 10 claims per 100 sold 28 Snowboard 2,400 4 claims per 100 sold 33 Required: 1. Prepare the entry to record warranty expense for Kim's for the year. If an amount box does not require an entry, leave it blank. Dec 31 (Record warranty expense) 2. Conceptual connection: Why does Kim's have to record a liability for future warranty claims? Warranties are Therefore, companies must record and a corresponding if such contingent amounts