Dynamo Corporation manufactures toasters. Each toaster comes with a 5-year assurance-type warranty. The toasters sell for $40 each. During Year 1, Dynamo sells 500 toasters, for cash. Past experience shows that the average warranty costs are $4 each or $2,000 for these toasters. In Year 1, Dynam pays $700 cash for warranty costs on the toasters sold that year. Required: Prepare Dynamo's journal entries related to the sales and warranty in Year 1