Blossom Inc. began selling game consoles on November $1,2024.$ The company offers a $60-$day warranty for defective merchandise.

Based on past experience with other similar products, Blossom estimates that $2\mathrm{.}20\%$ of the units sold will become defective in the

warranty period, and that the average cost of replacing or repairing a defective unit is $$20.$ In November, Blossom sold $38,000$ units

and $510$ defective units were returned. In December, Blossom sold $57,000$ units and $500$ defective units were returned. The actual

cost of replacing the defective units was $$16,160.$

Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December $31,2024.$

$($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 debit entry before credit entry.$)$

List of Accounts

Question Part Score

Prepare one summary journal entry at December $31,2024,$ 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 O for the amounts. List debit entry before credit entry.$)$

Date Account Titles

Debit

Credit

Dec. $31$

eTextbook and Media

List of Accounts

Question Part Score

What amounts will be included in Blossom's $2024$ income statement and balance sheet at December $31,2024,$ with regard to the

warranty?