021. Question 3 [10 points] X-cell Inc, extends a lifetime warranty on all lamps sold. Using past experience, the company estimates that 5% of lamps sold will be returned and replaced at an average cost of $15 per lamp On January 1, 2014, the balance in X-cell Inc.'s Estimated Warranty Liability account was $8,000. During 2014, sales totalled $476,000 or 14,000 lamps. The actual number of lamps returned and replaced was 735. (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 bilit 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 AM Date Account/Explanation F Debit Credit - AN AM + PM (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 December 31, 2014. Balance of Estimated Warranty Liability at Dec. 31? Warranty Expense as it appears on the Income Statement