View Policies Current Attempt in Progress Sheridan Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Sherida estimates that 4% 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 $15. 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 December 31,200 33,200 415 Prepare the journal entry to record the costs incurred in honoring 1,039 warranty claims. (Assume actual costs of $15,585.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit