K Corp offers warranties on all their goods. They estimate warranty expense at 5% of sales. At the beginning of 2024, the Estimated Warranty Payable account had a credit balance of $2,000. During the year, K Corp had $306,000 in sales and replaced defective goods with merchandise inventory costing $6,000.

1. Prepare the journal entry to record warranty expense.

2. Prepare the journal entry to record the replacement of defective goods.