Warranties Kim's Athletics sells bicycles and other sports and athletic equipment Sales and expected warranty claims for the year are as follows: Item Unit Sales Cost per Claim Mountain bikes 625 Expected Warranty Claims for Warranty Period 5 claims per 100 sold 1 claims per 15 sold 2 claim per 40 sold $40 150 90 Racing bikes Snowboards 400 35 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 (Record warranty expense) and a corresponding 2. Conceptual Connection: Why does Kim's have to record a liability for future warranty claims? Therefore, companies must record such contingent amounts are Warranties are Previous