Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2016. Based on an analysis of customer complaints made over the past two years, the cost of a warranty program was estimated at 0.2% of sales. During 2016, sales totaled $4,208,000. Actual costs of servicing products under warranty totaled $19,900.

IThe following information applies to the questions displayed belowj Prist Co. had not provided a warranty on its products. but competitive pressures forced management to add this feature at the beginning of 2016. Based on an analysis of customer complaints made over the past two years the cost of a warranty program was estimated at 0.2% of sales. During 2016, sales totaled $4.208,000. Actual costs of servicing products under warranty totaled $19,900. Z. ward: 315 out of 5.00 points a-2. Record the journal entry to show the effect of having the warranty program during 2016 f no entry is required for a transaction/event, select No journal entry required" in the first account field Debit Credit Event General Journal Warranty expense 8.416 Estimated warranty liability 8,416 Wages expense 8,416X 19,900 Estimated warranty liability 19,900 Cash Red text indicates no response was expected In a cell or a formula-based calculation is ncomect; no points deducted