(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.) Credit Account Titles and Explanation Debit By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Exercise 11-05 a-c (Part Level Submission) Lily Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Lily 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 2020 are as follows. Units Defective Prior to December 31 Month Units Sold 768 November 38,400 40,400 505 December (a) Your answer has been saved and sent for grading. See Gradebook for score details. Prepare the journal entry to record the costs incurred is entered. Do not indent manually.) honoring 1,273 warranty claims. (Assume actual costs of $25,460.) (Credit account titles are automatically indented when amount Account Titles and Explanation Debit Credit Warranty Liability 25460 25460 Repair Parts (To record honoring of warranty contracts.) By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attempts: 1 of 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 red. not manu Account Titles and Explanation Credit Debit By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. used Attempts: 0 of