Sandhill Manufacturing sells its products with a $75-$day warranty for defective merchandise. Based on past experience, Sandhill

estimates that $5\%$ of the units sold will become defective during the warranty period. Management estimates that the average cost of

replacing or repairing a defective unit is NT $$10($amounts in thousands$).$ The units sold and units defective that occurred during the

last $2$ months of $2020$ are as follows.

$($a$)$

Your answer is partially correct.

Prepare the journal entries to record the provision for warranties and the costs incurred in honoring $1,010$ warranty claims.

$($Assume actual costs of NT$$15,000$ and expenditures are for repair costs.$)($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and

enter $0$ for the amounts.$)$

Account Titles and Explanation