Warranty Costs Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a require repair at an average cost of $60 per unit. The following data reflect Milford's recent experience: Units sold Known product failures from sales in: October November December Date Dec.31 October November December Dec. 31 Total 23,000 22,000 25,000 70,000 To provide for estima 120 Description Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume tha General Journal 180 130 $ 160 220 210 Debit $ 460 350 210 Credit 4