Carnes electronic sells consumer electeonics that carry a 90-day manufacturer's warranty. at the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes recaived $440,000 for these extended warranties, and on average the warranties were 20% expired by year end.

1. prepare journal entries that summerize sales of the extended warranties and recognition of any revenue associated with those warranties.