Warranty Costs Brigham Company sells an electric timer that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty period, three percent of the units sold will require repair at an average cost of $35 per unit. The following data reflect Brigham's recent experience: October November December Dec. 31 Total 38,000 36,000 47,000 121,000 Units sold Known product failures from sales in: October November December 320 550 230 210 360 410 1,080 590 410 Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records. General Journal Date Description Debit Credit Dec.31 To provide for estimated future warranty expense