Warranties In 2019, BM) Plumbing Company sold 270 water heaters for $850 each. The water heaters carry a 2-year warranty for repairs, BMJ Plumbing estimates that repair costs will average 1% of the total selling price Required: 1. How much is recorded in the warranty liability account as a result of selling the water heaters during 2019, assuming no warranty service has yet been performed? 2. Prepare the necessary adjusting entry at December 31, 2019. Dec. 31 (Record warranty expense) Accounts Payable On May 18, Stanton Electronics purchased, on credit, 1,000 TV sets for $400 each. Stanton plans to resell these TVs in its store. Stanton paid the supplier on June 30. Required: Prepare the necessary journal entry (or entries) on May 18 and June 30. 1. May 18 (Record purchase of inventory on credit) 2. June 30 (Record payment to supplier)