Kingbird, Inc sells products that carry a two-year warranty. Any defective product is replaced with a new item taken from inventory Management believes that this is the most cost-effective way to deal with any defects or customer complaints. Estimates of claims are expected to be 2 out of every 100 units sold. The units sell for $20 and cost $10. All sales are on account, and the 13% HST is not included in the selling price Kingbird has a calendar year end and uses a perpetua inventory system Prepare journal entries for the following transactions 1 2 Sales on account for 3,500 units + HST Year-end accrual for warranty expense Replacement of 40 units under warranty 3 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. (To record sales on account plus HST.) (To record cost of goods sold.) 2 3. What is the ending balance in the Warranty Liability account? Ending balance in the Warranty Liability account of $ List of Accounts la