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Dual Pedal Products Company sells bicycles for $480,with a30-day warranty against defects. Past experience indicates that6%of the bicycles will have a defect and that the

Dual Pedal Products Company sells bicycles for $480, with a 30-day warranty against defects. Past experience indicates that 6% of the bicycles will have a defect and that the necessary repairs will cost $64 per bicycle. Sales for May were $432,000; 20 units sold in May were found defective and repaired that month.

What is the May 31 journal entry for the estimated liability for product warranties

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