Question 3 of 5 11.11/20 III View Policies Show Attempt History Current Attempt in Progress Swifty Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Swifty estimates that 4% 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 $25. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 36,000 720 December 38,000 475 Your answer is correct. Prepare the journal entry to record the costs incurred in honoring 1,195 warranty claims. (Assume actual costs of $29,875.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Warranty Expense 29875 Repair Parts 29875 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Warranty Expense 74000 Warranty Liability 74000