Bonita Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Bonita estimates that 4% 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 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 37,200 744 December 39,200 490 (a) Your Answer Correct Answer Correct answer icon Your answer is correct. Prepare the journal entry to record the costs incurred in honoring 1,234 warranty claims.

(Assume actual costs of $ 24,680.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title to record honoring of warranty contracts Warranty Expense enter an account title 24,680 enter a credit amount enter an account title to record honoring of warranty contracts Repair Parts enter an account title enter a credit amount 24,680 eTextbook and Media List of Accounts Attempts: 5 of 5 used (b) Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount eTextbook and Media List of Accounts Attempts: 0 of 5 used (c) 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 Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title