Marin Inc. sells products that carry a two-year warranty. Any defective product is replaced with a new item taken from inventory. Management believes that this is the most cost-effective way to deal with any defects or customer complaints. Estimates of claims are expected to be 4 out of every 100 units sold. The units sell for $21 and cost $11. All sales are on account, and the 13% HST is not included in the selling price. Marin has a calendar year end and uses a perpetual inventory system. Prepare journal entries for the following transactions: 1. 2. 3. Sales on account for 3,700 units + HST Year-end accrual for warranty expense Replacement of 44 units under warranty D