X-cell Inc. extends a lifetime warranty on all kettles sold. Using past experience, the company estimates that 4% of kettles sold will be returned and replaced at an average cost of $11 per kettle. On January 1, 2014, the balance in X-cell Inc's Estimated Warranty Liability account was $5,500. During 2014, sales totalled $487,500 or 12,500 kettles. The actual number of kettles returned and replaced was 493 (1) Prepare the following journal entries : Estimated warranty liabilities for units sold during 2014. Use the date December 31 Replacement of the units returned in 2014 (use the date December 31) Enter an appropriate description, and enter the dates in the format dd/mmm (ie. 15/Jan). General Journal Page Gj1 Date Account/Explanation F Debit Credit + (2) Calculate the balance in the Estimated Warranty Liability account at December 31, 2014, and the Warranty Expense that will appear on the income statement for the year-ended Docomber 31, 2014 Balance of Estimated Warranty Liability at Dec. 31? Warranty Expense as it appears on the Income Statement