Early in $2025,$ Swifty Equipment sold $400$ Rollomatics at $$6,000$ each. During $2025,$ Swifty spent $$20,000$ servicing the $2-$year

assurance warranties with inventory, cash, and payables that accompany the Rollomatic. All sales transactions are on a cash basis.

$($a$)$

Prepare $2025$ entries for Swifty. Assume that Swifty estimates the total cost of servicing the warranties in the second year will be

$$37,000.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are

automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record sales$)$

$($To record payment for warranty costs incurred$)$

$($To record estimated warranty expense and warranty

liability for expected warranty claims$)$