RACE NET ESOURCES Question 7 In 2021, Sandhill Co. introduces a new product that includes a two-year warranty on parts. During 2021, 3,400 units are sold for $350 each. The cost of each unit was $125. The company estimates that 3% of the units will be defective and that the average warranty cost will be $35 per unit. The company has a December 31 fiscal year end and prepares austing entries on an annual basis Prepare an adjusting entry at December 31, 2021, to accrue the estimated warranty cost. (Credit account titles are automatically indented when the amount is entered. Dometindent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Tities and Explanation Debit Credit Dec. 31 (T accrue estimated warranty expense) LINK TO TEXT LINK TO VISTO By accessing this Question Assistance, you will learn while you can ponts based on the Point Potential Policy set by your instructor by Study SAVEROLA Question Attempts: 0 of 15 used SUBMIT