Exercise 11-5 Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or unit is $25. The units sold and units defective that occurred during the last 2 months of 2017 are as follows Units Defective Prior to December 31 790 519 Month November December Units Sold 39,500 41,500 Prepare the journal entries to record the estimated liability for warranties and $32,725.) (Credit account titles are automatically indented when amount is entered. Do the costs incurred in honoring 1,309 warranty claims. (Assume actual costs of not indent manually.) Account Titles and Explanation Credit (To record honoring of warranty in January a manually.)