During 2019, Bird Company also sold walking flamingo robot birds. These robots came
with a 1 year assurance type warranty. The company also offered an extended warranty.
20 customers also purchased extended service type warranties on the robots during 2019.
Each of the 20 customers paid $50 each for these 2 year service type warranties.
Costs of servicing these warranties during 2020 was $600.
Instructions: Prepare the journal entries to record:
the sale of the service type warranties during 2019
the costs incurred on the service type warranties during 2020
the 2020 year end adjusting entry related to the serivce type warranties.