Early in 2020, Teal Equipment Company sold 600 Rollomatics at $5,500 each. During 2020, Teal spent $19,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis.

(a)

Prepare 2020 entries for Teal. Assume that Teal estimates the total cost of servicing the warranties in the second year will be $32,000. (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. Record journal entries in the order presented in the problem.)