On November 10, 2020, Singh Electronics began to buy and resell scanners for $56 each. Singh uses the perpetual system to accoun for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $36. Singh estimates warranty costs based on 20% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): Nov. Dec.. Jan. 2020 15 Sold 2,500 scanners for $140,000 cash. 30 Recognized warranty expense for November with an adjusting entry. 8 Replaced 160 scanners that were returned under the warranty. 15 Sold 5,600 scanners. 29 Replaced 42 scanners that were returned under the warranty. 31 Recognized warranty expense for December with an adjusting entry. 2021 14 Sold 280 scanners. 20 Replaced 64 scanners that were returned under the warranty, 31 Recognized warranty expense for January with an adjusting entry.