Question No. 10 On May 1, 2020, ABC co. started merchandising business. ABC sells product with a 3 month warranty. Management estimates that the average cost of repairing a defective unit is $16. The manufacturer of product has advised ABC to expect warranty costs to equal 10% of dollar sales. Journalize the following transactions. May 15 Sold 50 units for $4,000 cash. June 12 Sold 20 units for $1,600 cash. June 30 Estimated liability for warranties related to May and June sales. July 10 Repaired 10 products that were received under the warranty claim