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 $270 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 $19 to repair each Dishwasher. The account Estimated Liability for Warranties had a balance of $120,000 on January 1. Clean incurred $170,000 in actual expenditures during the year. Required: Identify and analyze the effect of the events related to the warranty transactions during the year. The effect of recording the sales transaction: Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Assets the Balance Sheet The effect of recording estimated warranty cost: Activity Accounts Statement(s) Liabilities + Stockholders' Equity How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, l.e, a decrease, be sure to enter the answer with a minus sign. Check My Work Balance Sheet Previous < The effect of recording actual warranty cost: Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Assets Balance Sheet Liabilities Determine the adjusted ending balance in the Estimated Liability for Warranties account. Check My Work Stockholders' Equity