Utilize the principle to estimate warranty liabilities. R&R Heating had cash sales for the month totaling $73,200. R&R offers a 6 - month warranty on its services. If R&R estimates warranty claims will equal 2% of sales, the journal entry to the estimated warranty expense for the month is: On January 1, Best way, Inc. signed a $175,000, 8%, 30 - year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry to record the first semiannual payment would be (round interest calculation to the nearest dollar) to