In 2021, Song Company introduces a new product that includes a two year warranty on parts. During 2021, 4,400 units are sold for $450 each. The cost of each unit was $175. The company estimates that 5% of the units will be defective and that the average warranty cost will be $85 per unit. The company has a December 31 fiscal year end and prepares adjusting entries on an annual basis. Prepare an adjusting entry at December 31, 2021, to accrue the estimated warranty cost.