Sunland Company began selling game consoles on November 1, 2021. The company offers a 75-day warranty for defective merchandise. Based on past experience with other similar products, Sunland estimates that 2.50% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $20. In November, Sunland sold 38,000 units and 580 defective units were returned. In December, Sunland sold 48,000 units and 790 defective units were returned. The actual cost of replacing the defective units was $27,400. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue warranty expense.) List of Accounts Prepare one summary journal entry at December 31, 2021, to record the cost of replacing the defective game consoles returned during November and December. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 (To record honouring warranty contracts.) List of Accounts What amounts will be included in Sunland's 2021 income statement and balance sheet at December 31, 2021, with regard to the warranty? Income statement Operating expenses) Balance sheet (Current Liabilities)