E11-5 Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancou units sold will become def the average cost of replacing or repairing a defective unit is $15. The units sold and units defective that occurred during the last 2 months of 2017 are as follows. Record estimated lial rt estimates that 3% of the expense for warrann Month November December Units Sold 30,000 32,000 Units Defective Prior to December 31 600 400 Instructions (a) Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $15,000.) (b) Determine the estimated warranty liability at December 31 for the units sold in November and December (c) Give the entry to record the honoring of 500 warranty contracts in January at an aver- age cost of $15