Required: 1. Prepare the entry to record warranty expense for Kim's for the year. If an amount box does not require an entry, leave it blank. Dec, 31 Warranty Expense Warranty Lability (Record warranty expense) 2. Conceptual Connection: Why does Kim's have to record a liability for future warranty claims? Worranties are contingent liabilities . Therefore, companies must record and a corresponding such contingent amounts are probable and reasonably estimated 3