Sheridan Manufacturing sells its products with a 75-day warranty for defective merchandise. Based on past experience, Sheridan estimates that 3% 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$13 (amounts in thousands). The units sold and units defective that occurred during the last 2 months of 2020 are as follows. Month Units Sold Units Defective Prior to December 31 November 29,000 560 December 32,300 430 Part 1 Prepare the journal entries to record the provision for warranties and the costs incurred in honoring 990 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 O for the amounts.) Account Titles and Explanation (To record provision for warranties) (To record honoring of warranty contracts) Debit Credit