Question $3-$Warranty Payable

During $2017,$ Cougar Manufacturing launched a new product carrying a one$-$year warranty against defects. The estimated warranty costs related to dollar sales are $3\%$ within $12$ months following the sale. Sales and actual warranty claim for the years ended December $31,2017$ are as follows:

$2017$

Sales

Claims

$$400,000$

$$19,000$

Prepare the journal entry at December $31,2017$ to estimate the warranty liability on the sales.

Prepare the journal entry at December $31,2017$ to record the actual claims.