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El1.5 (LO 2) Betancourt Company sells automatic can openers under a 75-day warranty for defective...

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Accounting

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El1.5 (LO 2) 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 de fective 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 2020 pense are as follows. Units Units Defective Prior to December 31 Month Sold November December 30,000 32,000 600 400 Instructions a. Prepare the journal entry to record the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of $5,000.) b. Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December. eGive the entry to record the honoring of 500 warranty contracts in January at an average cost of $15 El1.6 (LO 2) Gallardo Co is imioluad

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