Shelford Cutlery extends a lifetime replacement warranty on all units sold. Using past experience, the company estimates that $0\mathrm{.}75\%$ of units sold will be returned and require replacement at an average cost of $$105$ per unit. On January $1,2025,$ the balance in Shelford$$s Warranty Liability account was $$16,400.$ During $2025,$ sales totalled $$3,712,000$ or $11,600$ units. The actual number of units returned and replaced was $88.$

Required:

a$)$ Prepare the journal entry to accrue the estimated warranty costs for $2025.$

b$)$ Prepare the summary journal entry to record the warranty contracts honored during $2025$ for units that were returned for replacement.

c$)$ Calculate the balance in the Warranty Liability account at December $31,2025.$

d$)$ What is the amount of warranty expense that will appear on the income statement for the year ended December $31,2025?$