Young Company sells an electric timer that carries a three-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, four percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Young's recent experience: October November December Dec. 31 Total Units sold 36,000 34,000 45,000 115,000 Known product failures from sales in: October November December 320 550 210 1,080 230 360 410 590 410 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 Product Warranty Expense 230,000 * $ 0 Estimated Liability for Product Warranty 0 230,000 x To provide for estimated future warranty expense.