Early in 2020, Indigo Equipment Company sold 500 Rollomatics at $5,400 each. During 2020, Indigo spent $22,000 servicing the 2- year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis. Your answer is incorrect. Prepare 2020 entries for Indigo. Assume that Indigo 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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Prepare 2020 entries for Indigo assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $60,000 relates to sales of warranty contracts.Warranty costs incurred in 2020 were $22,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to O decimal places, e.g. 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Dec. 31, 2020 Cash Debit Credit 2700000 Sales Revenue Unearned Warranty Revenue Dec. 31, 2020 Warranty Expense Unearned Sales Revenue Dec. 31, 2020 Unearned Sales Revenue Sales Revenue (To record warranty revenue) eTextbook and Media 60000 22000