6 of 8 < > View Policies Current Attempt in Progress -/18 E Pharoah Company began selling game consoles on November 1.2021. The company offers a 75-day warranty for defective merchandise. Based on past experience with other similar products, Pharoah estimates that 3.10% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $21. In November, Pharoah sold 36,000 units and 570 defective units were returned. In December, Pharoah sold 44,000 units and 750 defective units were returned. The actual cost of replacing the defective units was $27,720, Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts) Date Dec. 31 Account Titles and Explanation (To accrue warranty expense) Debit Credit List of Accounts Prepare one summary journal entry at December 31, 2021, to record the cost of replacing the defective game consoles returned during November and December. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Dec. 31 Type here to search (To record honouring warranty contracts) eTextbook and Media List of Accounts Debiti Credit 11C 248AM 6/5/2002 Question 6 of 8 -718 What amounts will be included in Pharoah's 2021 income statement and balance sheet at December 31, 2021, with regard to the warranty? Income statement (Operating expenses) $ Balance sheet (Current Liabilities) $ eTextbook and Media List of Accounts Type here to search Save for Later ii C 11C A 2:41 AM 6/5/2002 Attempts: 0 of 2 used Submit