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Brief Exercise 13-13 Ayayai Factory provides a 2-year warranty with one of its products which was first sold in 2020. Ayayai sold $940,900 of products
Brief Exercise 13-13 Ayayai Factory provides a 2-year warranty with one of its products which was first sold in 2020. Ayayai sold $940,900 of products subject to the warranty. Ayayai expects $122,010 of warranty costs over the next 2 years. In that year, Ayayai spent $74,460 servicing warranty claims. Prepare Ayayai's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date 2020 (To record sales) During 2020 (To record warranty claims) 12/31/20 Open Show Work Click if you would like to Show Work for this
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