During 2017 BEMP corporation sells for cash 1,300 computers at $5,500 per unit. On the basis of past experience, the 2-year warranty costs are estimated to be $500 per unit. Sales occurred on July 31,2017. The warranty is not sold separately from the computer. BEMP corporation spent $75,000 servicing the 2-year warranties during 2017.

Required

Record any necessary journal entries in 2017, applying

the accrual basis method.