Streep Factory provides a 2-year warranty with one of its products which was first sold in 2020. Streep sold $1,000,000 of products subject to the warranty. Streep expects $125,000 of warranty costs over the next 2 years. In 2020, Streep spent $70,000 servicing warranty claims. Prepare Streep’s journal entries in 2020 to record the sales of its products, the costs incurred in honoring the warranties (assume expenditures are for repair costs), and the estimated liability for warranties at December 31, 2020.