Exercise 11-05 a-c Sheridan Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Sheridan 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 $15. The units sold and units defective that occurred during the last 2 months of 2020 are as follows. Month November December Units Sold 30,800 32,800 Units Defective Prior to December 31 616 410 Your answer is partially correct. Try again. Prepare the journal entry to record the costs incurred in honoring 1,026 warranty claims. (Assume actual costs of $15,390.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Warranty Liability 15585 Repair Parts 15585 (To record honoring of warranty contracts.) LINK TO TEXT Your answer is partially correct. Try again. 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 Warranty Expense 23055 Warranty Liability 23055