Brief Exercise $8-11($Algo$)$ Record warranty liability $($LO$85)$

Cloudy introduces a new compact music player that carries a two$-$year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately $1\%$ of sales. By the end of the first year of selling the product, total sales are $$29\mathrm{.}6$ million, and actual warranty expenditures are $$160,000.$