Question 4 [10 points) ABC Inc extends a lifetime warranty on all lamps sold Using past experience the company estimates that 1% of lamps sold will be returned and replaced at an average cost of $14 per lamp On January 1 2014 the balance in ABC Inc's Estimated Warranty Liability account was 57 500 During 2014 sales totalled $360,000 or 10,000 lamps The actual number of lamps returned and replaced was 108 Prepare the following journal entries Estimated warranty liabities for units sold during 2014 Use the date December 31 Replacement of the units returned in 2014 (use the date December 31) Enter an appropriate description and enter the dates in the format ddimmm ( 15/Jan) General Journal Page 1 Dale Account Explanation F Debt Credit (2) Calculate the balance in the Estimated Warranty Linbaty account at December 31, 2014 and the Warranty Expense that will appear on the income statement for the year eaded December 31, 2014 Balance of Estimated Warranty Liability at Dec 312 Warranty Expense as it appears on the income Statement