Dell Technologies sold 500 laptops to the Province of Nova Scotia during 2020 at a total price of $400,000, with a warranty guarantee that the product was free from any defects. The cost of the laptops sold was $ 280,000. The term of the assurance warranty is one year, with an estimated cost of $ 10,000. In addition, Dell sold extended warranties on the laptops for four years beyond the one-year period for $ 125,000.

Instructions

Prepare the journal entries to record the sale and related warranties for 2020.