3. Martin Company sells 20000 units of Computer in every year. Production cost per unit is $15000. Selling price per unit is $30000. Martin observes that almost 20% of sold products found defective and needs to be repaired as per warrantee policy of the Company. In April Martin sold 1000 units and in May sold 1700 units, among which 100 and 350 units are defective. Repair cost per unit is $1000. Tax Rate is 20%. No Insurance. Instructions (a) Determine the estimated warranty liability at December 31 for the units sold in April and May. (b) Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring. (c) Give the entry to record the honoring of 250 warranty contracts in June at an average cost of $1000.