Sunland Motors sells remote control airplane engines, which carry a one$-$year warranty. If a customer brings in a defective engine, he replaces the engine with a new one from his inventory. Sunland estimates that $2\%$ of units sold will be defective. As at January $1,$ the Warranty Liability account had a credit balance of $$400.$

Sunland provided the following information for his year end of December $31.$

Cost per engine

$$150$

Total sales

$930$ units

Actual warranty costs $$1,195$

Calculate the estimated warranty expense for the year.

Estimated warranty expense

$

Question Part Score

$-\frac{-}{2}$

Prepare the journal entry for the estimated warranty expense for the year. $($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 $0$ for the amounts. List debit entry before credit entry.$)$

Date Account Titles

Debit

Credit

Dec. $31$