33. Please answer below.

Warranty Costs Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Milford knows that between the sale and the end of the product warranty period, two percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Milford's recent experience:

	October	November	December	Dec. 31 Total
Units sold	24,000	26,000	26,000	76,000
Known product failures from sales in:
October	130	190	170	490
November		130	220	350
December			210	210

Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerProduct Warranty ExpenseEstimated Liability for Product Warranty Correct 1.00 points out of 1.00	$Answer Incorrect 0.00 points out of 1.00	$Answer Correct 1.00 points out of 1.00
	AnswerProduct Warranty ExpenseEstimated Liability for Product Warranty Correct 1.00 points out of 1.00	Answer Correct 1.00 points out of 1.00	Answer Incorrect 0.00 points out of 1.00
	To provide for estimated future warranty expense.