A company sold 5000 washing machines on March 15, 2012, for $2,000 a piece, together with a 1-year warranty. Maintenance on each washing machine during the warranty period is estimated to be $100. Actual warranty costs (inventory) incurred in 2012 were $ 10,000.

Required: - Prepare entries to record the following:

a) Sale of the washing machines.

b) Related warranty costs.

c) The accrual on December 31, 2012.