Warranty Costs Young Company sells an electric timer that carries a 3-month unconditional warranty against product failure. Based on a reliable statistical analysis, Young knows that between the sale and the end of the product warranty period, 4 percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Young's recent experience: 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