Question 3 ofs - 1 TO Vic Policies Current Attempt in Progress Sunland Company began selling game consoles on November 1, 2021. The company offers a 75-day warranty For defective merchandise. Based on past Sperience with other similar products. Sunland estimates that 2.20% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $ 16. In November, Sunland sold 34,000 units and 470 defective units were returned in December, Sunland sold 55.000 units and 660 defective units were returned. The actuel cost of replacing the defective units was $ 18,080. What amounts will be included in Sunland's 2021 income statement and balance sheet at December 31, 2021 with regard to the Warranty Income statement (Operating expenses) 5 Balance sheet Current Liabilities) eTextbook and Media List of Accounts -/1 III View Policies Current Attempt in Progress Sunland Company began selling game consoles on November 1, 2021 The company offers a 75-day warranty for defective merchandise. Based on past experience with other similar products, Sunland estimates that 2 20% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $16. In November, Sunland sold 34,000 units and 470 defective units were returned. In December, Sunland sold 55,000 units and 660 defective units were returned The actual cost of replacing the defective units was $ 18.080. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec. 31 Warranty pente 27808 Warranty Liability 27808 To accrue warranty expense) e Textbook and Media List of Accounts Prepare one summaryjournal entry at December 31, 2021 to record the cost of replacing the defective game consoles returned during November and December. (Credit account titles are automatically indented when the amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 Warranty Llability 18080 Repair Parts Inventory Salarles Payable, Cath, etc 18080 (To record honouring warranty contracts) eTextbook and Media List of Accounts income Statement and balance shee 31.2021 with regard to the What amounts will be included in Sunland's 2021 income statement and balance sheet at December 31, 2021 with regard to the Warranty Income statement (Operating expenses) Balance sheet (Current Liabilities) e Textbook and Media List of Accounts
