As part of its operations, JIm sells equipment. The equipment includes a warranty. The company sold 400 pieces of equipment for an average sales price of $600. Included in the sales price are warranties that are estimated to be worth $150 for each piece of equipment. The warranty is for two years from date of purchase. The company expects total actual warranty costs to be $57,000. Actual costs incurred were $29,000 in year one. Warranty revenue is recognized based on costs incurred as a percentage of total expected costs. Show all journal entries for the sales and the warranty using the revenue approach.

(Round to the nearest dollar)