Ayayai Harvest Company sells a product that includes a one$-$year warranty on parts and labor. During the year, $12,400$ units are sold. Ayayai Harvest expects that $3\%$ of the units will be defective and that the average warranty cost will be $$50$ per unit. Actual warranty costs incurred during the year were $$17,360.$

Prepare the journal entries to record $($a$)$ the estimated warranty costs and $($b$)$ the actual costs incurred. $($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. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($a$)$

$$

$$

$$

$($b$)$

$$

$$

$$

$$

$$

$$