Problem 3 (10 points) Spotty Dots sells its product subject to a warranty that the six months after the date of sale. Warranty costs are used $ month of October, the warranty covers the cost of parts for repairs during estimated to be 5% of sales. During the the company performed warranty work and used $11,000 of parts to perform sale. Warranty Work. Sales for October were $450,000. (We covered this on March 25.) re the journal entry to record the warranty expense for the month of October . Prepare the Credit Date PR Debit Accounts 10/31 To record estimated warranty liability 2. Prepare the journal entry to record the costs of the warranty work completed in October. Date PR Debit Credit 10/31 To record cost of warranty repairs. 3. If the Estimated Warranty Liability account had a credit balance of $10,000 on September 30, what is the account balance at October 31