Units sold

Dec: 30,000

Oct: 20,000

Nov: 25,000

orange

Product failure: in dec

month of sale: oct

number of product failure: 130

red

Product failure: in dec

month of sale: nov

number of product failure: 150

blue

Product failure: in dec

month of sale: dec

number of product failure: 200

Tulip Co. sells an irrigation pump that carries a 6-month unconditional warranty against product failure. Based on a reliable statistical analysis, Tulip Co. knows that between the sale and the end of the product warranty period, 5 percent of the units sold will require repair at an average cost of $110 per unit. The following data reflect the Company's recent experience: \begin{tabular}{|c|c|c|c|c|} \hline Date & Description & Debit & Credit \\ \hline Dec. 31 & Product Warranty Expense & & 0 & 0 \\ \cline { 1 - 4 } & & & 0 & 0 \\ \hline & \multirow{2}{*}{ To record estimated warranty expense. } & & & \\ \hline \end{tabular}