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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 months of 2020 are as follows. Units Sold Month Units Defective Prior to December 31 38,400 768 November 40,400 505 December (a) Prepare the journal entry to record the costs incurred in honoring 1,273 warranty claims. (Assume actual costs of $25,460.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (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