Question #$7(6$ marks$)$

Spector Enterprises sells clocks and provides a lifetime warranty on their product. Past experience suggests

that $3\%$ of clocks sold will be returned for replacement, at a cost of $$26$ each. During $2023,$ the total sales for

the company was $$506,363$ or $10,188$ clocks sold at $$49\mathrm{.}70$ per unit. On August $7,2024,29$ clocks were

returned and replaced under warranty. The company has a December $31$ year$-$end.

REQUIRED:

$1$ Prepare the journal entry to record the estimated warranty for $2023$ on December $31.$

$2$ Prepare the journal entry to record the replacement of the clocks on August $7,2024.$