Warranty Expenses A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. Sales for June were $450,000. During the month of June, the company performed warranty work and used $12,000 of parts to perform the warranty work. 1. Prepare the journal entry to record the warranty expense for the month of June. The company uses an account called Estimated Warranty Liability. Show your work. 2. Prepare the journal entry to record the costs of the warranty work completed in June. Show your work. Date Account Debit Credit Date Account Debit Credit If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31, what is the account balance at June 30? Show your work