Newman Corporation's warranty states that defective glasses will be replaced free of charge for the life of the product. Newman estimates that 2% of the pairs of glasses sold will require replacement. Each pair of glasses costs Newman $120 to produce. During February, 2021, Newman sold 3,100 pairs of glasses at an average price of $375 per pair.

Required:

1. Record the estimated warranty liability for February.

2. Assume that Newman replaces 50 pairs of glasses in February, record the journal entry to record the warranty replacement.

Space has been provided for your calculations.