Brief Exercise 13-13

Blossom Factory provides a 2-year warranty with one of its products which was first sold in 2017. Blossom sold $932,500 of products subject to the warranty. Blossom expects $137,130 of warranty costs over the next 2 years. In that year, Blossom spent $66,530 servicing warranty claims. Prepare Blossoms 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.)

Debit	Account	Debit	Credit
2017
	(to record sales)
During 2017
	(to record warranty claims
12/31/2017