Bridgeport Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Bridgeport sold products for $2.71 million and spent $70,100 servicing warranty claims. At year end, Bridgeport estimates that an additional $523,200 will be spent in the future to service warranty claims related to the 2020 sales. Prepare entries for the warranty that recognize the sale as a multiple deliverable with the warranty as a separate service that Bridgeport bundled with the selling price of the product. Ignore any cost of goods sold entry. Sales in 2020 occurred evenly throughout the year. Warranty agreements similar to this are available separately, are estimated to have a stand-alone value of $610,600, and are earned over the warranty period as follows: 2020 - 25%, 2021 - 50%, and 2022 - 25%. Also prepare the entries to record the $70,100 expenditure for servicing the warranty during 2020, and the adjusting entry required at year end, if any, under the revenue approach used for service-type warranties.

Date	Account Titles and Explanation	Debit	Credit
2020	Interest ExpenseWarranty ExpenseNo EntrySales RevenueCashWarranty RevenueMaterials, Cash, PayablesUnearned Revenue
	Sales RevenueMaterials, Cash, PayablesUnearned RevenueWarranty RevenueNo EntryWarranty ExpenseCashInterest Expense
	CashWarranty RevenueWarranty ExpenseNo EntrySales RevenueUnearned RevenueMaterials, Cash, PayablesInterest Expense
	(To record cash sale)
2020	Warranty ExpenseCashUnearned RevenueMaterials, Cash, PayablesWarranty RevenueSales RevenueInterest ExpenseNo Entry
	Materials, Cash, PayablesNo EntryUnearned RevenueSales RevenueCashWarranty ExpenseInterest ExpenseWarranty Revenue
	(To record warranty expense)
Dec. 31, 2020	Sales RevenueUnearned RevenueWarranty RevenueWarranty ExpenseNo EntryCashMaterials, Cash, PayablesInterest Expense
	Unearned RevenueCashSales RevenueWarranty ExpenseNo EntryMaterials, Cash, PayablesWarranty RevenueInterest Expense
	(To record year-end adjustment)