Ivanhoe Inc. began selling game consoles on November 1, 2024. The company offers a 60-day warranty for defective merchandise. Based on past experience with other similar products, Ivanhoe estimates that 2.90% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $23. In November, Ivanhoe sold 34,000 units and 530 defective units were returned. In December, Ivanhoe sold 40,000 units and 710 defective units were returned. The actual cost of replacing the defective units was $22,816.

Ivanhoe Inc. began selling game consoles on November 1, 2024. The company offers a 60-day warranty for defective merchandise. Based on past experience with other similar products, Ivanhoe estimates that 2.90% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $23. In November, Ivanhoe sold 34,000 units and 530 defective units were returned. In December, Ivanhoe sold 40,000 units and 710 defective units were returned. The actual cost of replacing the defective units was $22,816. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2024