Maiden Corp. manufactures and sells travel clocks. Each clock costs $12.50 to pro- duce and sells for $25. In addition, each clock carries a warranty that provides for free replacement if it fails during the two years following the sale. In the past, 5 percent of the clocks sold have had to be replaced under the warranty. During October, Maiden sold 52,000 clocks, and 2,800 clocks were replaced under the warranty. Prepare journal entries to record the estimated liability for product warranties during the month and the clocks replaced under warranty during the month.