Polar Company manufactures and sells Ice Machines. Polar provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time pe of $11 to repair each Ice Machine. The account Estimated Liability for Warranties had a balance of $120,000 on January 1 . Polar incurred $175,000 in actual expenditures during the year Required: Prepare all journal entries necessary to record the events related to the warranty transactions during the year. During the year, it sold 100,000 Ice Machines for $400 each. How does this entry affect the accounting equation Indicate the effect on financial statement items by Analysis of past warranty records indicates that 12% of all sales will be returned for repair within the warranty period. Polar expects to incur expenditures of $11 to repair each Ice Machine. The acco Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Polar incurred $175,000 in actual expenditures during the year. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect) "+" for increase (0 Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Determine the adjusted ending balance in the Estimated Liability for Warranties account