Keaton Inc. sells stability balls for $$30/$each$.$ Each ball comes with a two year warranty. Keaton accrues warranty expense at a rate of $1\mathrm{.}5\%$ of sales dollars. Their cost to replace damaged and defective stability balls under warranty is $$7$ per ball.

In June $2023,$ Keaton sold $1,000$ stability balls.

What is the dollar value of Keaton's June sales?

How much should cooper record was Warranty Expense for June?

Prepare the journal entry to record June's Warranty Expense.

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In the month of August, $2023,25$ balls were returned under the warranty.

Prepare the journal entry to record the replacement of the returned balls.

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CR: