Betancourt Company sells automatic can openers under a75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2017 are as follows.

Month	Units Sold	Units Defective Prior to December 31
November	34,100	682
December	36,100	451

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Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring1,133warranty claims. (Assume actual costs of $22,660.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To accrue estimated warranty costs.)
(To record honoring of warranty contracts.)

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Determine the estimated warranty liability at December 31 for the units sold in November and December.

Estimated warranty liability

$

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Give the entry to record the honoring of500warranty contracts in January at an average cost of $20. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2017 are as follows. Month Units Sold Units Defective Prior to December 31 November December 34,100 36,100 682 451 Don't show me this message again for the assignment Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,133 warranty claims. (Assume actual costs of $22,660.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Warranty Expense Debit Credit 42120 Warranty Liability 42120 (To accrue estimated warranty costs.) Warranty Liability 22660 Cash 22660 (To record honoring of warranty contracts.) Don't show me this message again for the assignment Link to Text Determine the estimated warranty liability at December 31 for the units sold in November and December. $ Estimated warranty liability Don't show me this message again for the assignment Link to Text Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $20. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation f Debit Credit