Quick Wheels, Inc., sells racing bicycles and warrants all parts for one year. The average price per bicycle is \(\$ 560\), and the company sold 4,000 in 1998 . The company expects \(20 \%\) of the bicycles to develop defective parts within one year of sale. The estimated average cost of warranty repairs per defective bicycle is \(\$ 40\). By the end of the year, 500 bicycles sold that year had been returned and repaired under warranty. On January 2, 1999, a customer returned a bicycle purchased in 1998 for repairs under warranty. The repairs were made on January 3. The cost of the repairs included parts, \(\$ 25\), and labor, \(\$ 15\).

a. Calculate the amount of the estimated product warranty payable.

b. Prepare the entry to record the estimated product warranty payable on December 31, 1998.

c. Prepare the entry to record the repairs made on January 3, 1999.