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Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on...

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Accounting

Betancourt Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Betancourt estimates that 3% 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 2017 are as follows.

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Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,299 warranty claims. (Assume actual costs of $19,485.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Determine the estimated warranty liability at December 31 for the units sold in November and December

Estimated warranty liability:

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Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $15. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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please answer all incorrect questions and calculations thank you.

Month November December Units Sold 39,200 41,200 Units Defective Prior to December 31 784 515

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