Awan Corporation started providing a one-year warranty on one of their products. There were a total of 2,100 of these products sold during 20x3. The company estimates that the cost of warranty repairs will be as follows:

Amount Probability

$0	50%
50,000	15%
85,000	10%
120,000	18%
250,000	7%

Total warranty costs incurred during the year amounted to $26,300 and were charged to cost of goods sold.

Required Prepare the adjusting journal entries required at December 31, 20x3.