Kim's Athletics selis bicycles and other sports and athletic equipment. Sales and expected warranty claims for the year are as follows:

Required:

Prepare the entry to record warronty expense for Kims for the year. If an amount box does not require an entry, leave it blank.

Dec. $31$

$($Record warranty expense$)$

Conceptual Connection: Why does Kim's have to record o liability for future warranty claims?

Warranties are

Therefore, companies must record

and a corresponding

if such

contingent omounts are