Concord Company sells automatic can openers under a $75-$day warranty for defective merchandise. Based on past experience, Concord 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 $2027$ are as follows.

$\backslash$table$[[$Month$,$Units$5$old,Units Defective Prior to December $31],[$November$,34,000,680],[$December$,36,000,450]]$

$(a)$

Prepare the journal entry to record the costs incurred in honoring $1\mathrm{.}130$ warranty claims. $($Assume actual costs of $$22\mathrm{.}600.)($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit