Question 5 [10 points] Weber Inc. extends a lifetime warranty on all flashlights sold. Using past experience, the company estimates that 4% of flashlights sold will be returned and replaced at an average cost of $11 per flashlight. On January 1, 2014, the balance in Weber Inc.'s Estimated Warranty Liability account was $5,500. During 2014, sales totalled $585,000 or 13,000 flashlights. The actual number of flashlights returned and replaced was 473. (1) Prepare the following journal entries : Estimated warranty liabilities for units sold during 2014. Use the date December 31. Replacement of the units returned in 2014 (use the date December 31). Enter an appropriate description, and enter the dates in the format dd/mmm (ie. 15/Jan). General Journal Page Gj1 Date Account/Explanation Debit Credit F + (2) Calculate the balance in the Estimated Warranty Liability account at December 31, 2014, and the Warranty Expense that will appear on the income statement for the year-ended December 31, 2014 Balance of Estimated Warranty Liability at Dec. 31? Warranty Expense as it appears on the Income Statement? Choose an Account or Heading Categories: Accounts and Headings: All Accounts Payable Assets Accounts Receivable Liabilities Accumulated Amortization, Copyright Equity Accumulated Amortization, Patents Equity Accumulated Amortization, Trademark Revenues Accumulated Depreciation, Automobiles Expenses Accumulated Depreciation, Boats Other Accumulated Depreciation, Building Accumulated Depreciation, Equipment Accumulated Depreciation, Furniture Accumulated Depreciation, Land Improvements Accumulated Depreciation, Machinery Accumulated Depreciation, Trucks Advertising Expense Advertising Payable Allowance for Doubtful Accounts Amortization Expense, Copyright Amortization Expense, Patents Search: Erase Cancel Choose an Account or Heading Categories: Accounts and Headings: All Automobiles Assets Bad Debts Expense Liabilities Benefits Expense Equity Boats Equity Bonds Payable Revenues Building Expenses CPP Expense Other CPP Payable Cash Commissions Earned Consulting Revenue Earned Copyright Cost Of Goods Sold Current Portion of Mortgage Payable Delivery. Expense Depreciation Expense, Automobiles Depreciation Expense, Boats Search: Erase Cancel 111 Choose an Account or Heading Categories: Accounts and Headings: Depreciation Expense, Boats Assets Depreciation Expense, Building Liabilities Depreciation Expense, Equipment Equity Depreciation Expense, Furniture Equity Depreciation Expense, Land Improvements Revenues Depreciation Expense, Machinery Expenses Depreciation Expense, Trucks Other Depreciation expense Discount on Bonds Payable Dividends El Expense Employee Income Taxes Payable Employee Medical Insurance Payable Employee Union Dues Payable Employment Insurance Payable Equipment Estimated Vacation Pay Liability Gatimated Warranty liability Search: Erase Cancel Choose an Account or Heading Categories: Accounts and Headings: All Furniture Assets GST Payable Liabilities Gain on Retirement of Bonds Equity HST Payable Equity Income Summary Revenues Income Taxes Expense Expenses Income Taxes Payable Other Insurance Expense Interest Earned Interest Expense Interest Payable Interest Receivable Investment in Bonds Land Land Improvements Long-Term Notes Payable Long-term Investment in Shares Loss on Retirement of Bonds Search: Erase Cancel Choose an Account or Heading ategories: Accounts and Headings: OSS UIT Ourement OT VOITUS ssets Machinery abilities Merchandise Inventory quity Mortgage Payable Equity Notes Receivable Revenues Office Salaries Expense Expenses Office Supplies Expense Other PST Payable Patents Premium on Bonds Payable Prepaid Advertising Prepaid Insurance Prepaid Interest Prepaid Rent Property Taxes Expense Property Taxes Payable Rent Earned Rent Expense Search: Erase Cancel PAS UI Heading Fategories: Accounts and Headings: Rent Payable Issets Rent Receivable Liabilities Rent expense, office space Equity Rent expense, selling space Equity Retained Earnings Revenues Salaries Expense Expenses Salaries Payable Other Sales Sales Discounts Sales Returns and Allowances Sales Salaries Expense Share Capital Short-Term Notes Payable Store Supplies Expense Supplies Supplies Expense Trademark Search: Erase Cancel Se an A leading ategories: Accounts and Headings: 1 Salaries Expense ssets Salaries Payable abilities Sales quity Sales Discounts Equity Sales Returns and Allowances Revenues Sales Salaries Expense Expenses Share Capital Other Short-Term Notes Payable Store Supplies Expense Supplies Supplies Expense Trademark Trucks Unearned Consulting Revenue Unearned Rent Unearned Revenue Utilities Expense Warranty Expense Search: Frase Cancel