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On November 10, 2020, Singh Electronics began to buy and resellscanners for $61 each. Singh uses the perpetual system to account for inventories. The scanners

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On November 10, 2020, Singh Electronics began to buy and resellscanners for $61 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $41. Singh estimates warranty costs based on 16% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): Nov. Dec. 2020 15 Sold 2,000 scanners for $122,000 cash. 30 Recognized warranty expense for November with an adjusting entry. 8 Replaced 21e scanners that were returned under the warranty. 15 Sold 6,000 scanners. 29 Replaced 52 scanners that were returned under the warranty. 31 Recognized warranty expense for December with an adjusting entry. 2021 14 Sold 300 scanners. 20 Replaced 74 scanners that were returned under the warranty. 31 Recognized warranty expense for January with an adjusting entry. Jan. Required: 1. How much warranty expense should be reported for November and December 2020? Warranty Expense November December Total 0 2. How much warranty expense should be reported for January 2021? (Round your intermediate calculations and final answer to the nearest whole number.) 3. What is the balance of the estimated warranty liability as of December 31, 2020? Warranty expense for November Warranty expense for December Cost of replacing om in December Liability balance 4. What is the balance of the estimated warranty liability as of January 31, 2021? Beginning balance Warranty expense for January Cost of replacing items in January Liability balance and final answer to the nearest whole number.) View transaction list X 1 Record the sale of scanners to customers. 2 Record the cost of the November 15 sale. 3. Record the scanner warranty expense and liabihy at 16% of the units sold. 4 Record the cost of scanner warranty replacements. 5 Record the sale of scanners to customers. 6. Record the cost of the December 15 sale. 7 Record the cost of scanners warranty replacements. Note : = journal entry has been entered Record entry Clear entry

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