On March 17, Superior Company sells 1,000 cell phones for $191,000. The company offers a warranty with the cell phones and estimates that 1% of the selling price will go to pay for warranty repairs. What journal entry should the company make on March 17 to estimate the warranty liability associated with the cell phones sold? What effect does this entry have on the accounting equation? Assets = Liabilities + Equity On April 4, one of the cell phones is brought in for a warranty repair that requires a $60 replacement. What journal entry should the company make on April 4 to record the warranty repair? What effect does this entry have on the accounting equation? Assets = Liabilities + Equity