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. Month November December Units Sold 38,400 40,400 Units Defective Prior to December 31 768 505 (a) ZYour answer has been saved and sent for grading. See Gradebook for score details. 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 Credit Debit 25460 Warranty Liability Repair Parts 25460 (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 1 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 entered. Do not indent manually.) Account Titles and Explanation Debit Credit 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 SAVE FOR LATER SUBMIT ANSWER SUBMIT