Warranties Clean Corporation manufactures and sells Dishwashers. Clean provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time period. During the year, it sold 100,000 Dishwashers for $210 each. Analysis of past warranty records indicates that 12% of all sales will be returned for repair within the warranty period. Clean expects to incur expenditures of $16 to repair each Dishwasher. The account Estimated Liability for Warranties had a balance of $120,000 on January 1. Clean incurred $125,000 in actual expenditures during the year. Required: Prepare all journal entries necessary to record the events related to the warranty transactions during the year. During the year, it sold 100,000 Dishwashers for $210 each. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting *-* for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Journal Balance Sheet Income Statement Stockholders' Net Description Debit Credit Assets Liabilities + Equity Revenues Expenses Income Cash 21,000,000 + NE NE NE NE NE Sales 21,000,000 NE NE + - + NE + Feedback Check My Work Record the sale of Dishwashers. Analysis of past warranty records indicates that 12% of all sales will be returned for repair within the warranty period. Clean expects to incur expenditures of $16 to repair each Dishwasher. The account Estimated Liability for Warranties had a balance of $120,000 on January 1. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Description Warranty expense Estimated liability for warranties Journal Balance Sheet Income Statement Stockholders' Net Debit Credit Assets = Liabilities + Equity Revenues Expenses = Income 192,000 NE NE NE + 192,000 NE NE NE NE NE Clean incurred $125,000 in actual expenditures during the year. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Description Estimated liability for warranties Cash Feedback Journal Balance Sheet Debit 125,000 Credit Assets = Liabilities + Stockholders' Equity Revenues NE NE NE 125,000 NE NE NE Check My Work When actual repairs of the Dishwasher occur, they do not result in an expense. Determine the adjusted ending balance in the Estimated Liability for Warranties account. $ 199,000 X Income Statement Net Expenses Income NE NE NE NE Painte