XYZ Company sold merchandise for $20,000 cash, which cost $14,000. The merchandise had a warranty, and XYZ Company estimates warranty expenses at 5% of sales. Requirements: a. Prepare the journal entry to record the sale of merchandise by XYZ Company. b. Record the cost of goods sold. c. Estimate the warranty expense. d. Determine the total gross profit for the sale. e. Analyze the impact of the warranty expense on the income statement and balance sheet.