PRINTER VERSIONBACK NEXT Exercise 11-5 (Part Level Submission) Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that 4% 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 2017 are as follows of the units sold will become defective during the Month November December Units Sold 31,200 33,200 Units Defective Prior to December 31 624 415 ? (a) Your answer is correct. Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,039 warranty claims. (Assume actual costs of $15,585.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation DebitCredit Warranty Expense 38640 Warranty Liability (To accrue estimated warranty costs.) Warranty Liability 38640 15585 Repair Parts 15585 To record honoring of warranty contracts.) SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER K TO TEXT Attempts: 1 of 3 used