Ayayai Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Ayayai sold products for $2 million and spent $60,000 servicing warranty claims. At year end, Ayayai estimates that an additional $500,000 will be spent in the future to service warranty claims related to the 2020 sales. Prepare Ayayai's journal entries to record the sale of the products, the $60,000 expenditure, and the December 31 adjusting entry under the assurance-type warranty approach. Ignore any cost of goods sold entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2020 (To record cash sale) Dec. 31, 2020 (To record warranty expense) eTextbook and Media