SwiftyCompany sells automatic can openers under a75-day warranty for defective merchandise. Based on past experience,Swiftyestimates that4% 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 $25. The units sold and units defective that occurred during the last 2 months of 2020 are as follows.

Month Units SoldUnits Defective Prior to December 31

November 36,000 720

December 38,000 475

Prepare the journal entry to record the costs incurred in honoring1,195warranty claims. (Assume actual costs of $29,875.)(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Warranty Liability 29875

Reapir Parts 29875

(To record honoring of warranty contracts.)

Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

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