On January $1,2022,$ Crane Company began a warranty program to stimulate sales. It is estimated that $5\%$ of the units sold will be

returned for repair at an estimated cost of $$32$ per unit. Sales and warranty figures for the three years ended December $31$ are as

follows:

$($a$)$

$$ Your answer is correct.

Calculate the warranty expense for each year and warranty liability at the end of each year.Record the warranty transactions for each year. Credit Repair Parts Inventory for the actual warranty costs. $($Credit account titles

are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem. List debit entry before credit entry.$)$

Date

Account Titles

Debit

Credit

$($To record honouring warranty contracts.$)$

$[[]$

$($To accrue warranty expense.$)$

$[$Warranty Liability

$($To record honouring warranty contracts.$)$

$($To accrue warranty expense.$)$

$($To record honouring warranty contracts.$)$

$($To accrue warranty expense.$)$