Brief Exercise 13-13

Pharoah Factory provides a 2-year warranty with one of its products which was first sold in 2020. Pharoah sold $1,077,700 of products subject to the warranty. Pharoah expects $123,000 of warranty costs over the next 2 years. In that year, Pharoah spent $63,400 servicing warranty claims. Prepare Pharoahs 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.)

Date	Account Titles and Explanation	Debit	Credit
2020
	(To record sales)
During 2020
	(To record warranty claims)
12/31/20