h interest expense is created by this note in 2017? 3 tHow much interest expense is created by this note in 2018 Prepare the journal entries on December 1, December 31 (Trista and Co.'s year-end), and the maturity date Exercise 10-14 Estimated warranties LO4 CHECK FIGURES: C. $15.470, d. S9750 hefford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that 0.5% of units sold will be returned and require replacement at an average cos of $130 per unit. On January 1, 2017, the balance in Shefford's Estimated Warranty Liability account was $15,600. During 2017, sales totalled $3,600,000 or 15,000 units. The actual number of units returned and replaced was 76 Required Prepare the entry to estimate warranty liabilities based on the units sold for 2017. Assume the adjustment is made on December 31 a. ecord the replacement of the units returned in 2017 (use a date of December 31) Calculate the balance in the Estimated Warranty Liability account at December 31, 2017 d. W December 31. 20172 Exercise 10-15 Warranty expense and liability 104