Bonita Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Bonita sold 20,000 warranty contracts at $123 each. The corporation spent $183,000 servicing warranties during 2017, and it estimates that an additional $915,000 will be spent in the future to service the warranties.

Prepare Bonita's journal entry for the sale of contracts. Assume the service costs are nventory costs automatically indented when annount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash 2460000 T Unearned Warranty Re 2460000