Early in 2020, Waterway Equipment Company sold 600 Rollomatics at $5,800 each. During 2020, Waterway spent $21,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis. Your answer is correct Prepare 2020 entries for Waterway. Assume that Waterway estimates the total cost of servicing the warranties in the second year will be $36,000. Of no entry Is required, select "No Entry" for the occount tities and enter 0 for the amounts. Credit occount titles are outomaticolly indented when amount is entered. Do not indent manually. Record joumol entries in the order presented in the problem.) Prepare 2020 entries for Waterway assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $58,000 relates to sales of warranty contracts. Warranty costs incurred in 2020 were $21,000. Estimate revenues to be recognized on a straight-line basis. (if no entry is required, select "No Entry" for the account tilles and enter 0 for the omounts. Credit occount titles are outomatically Indented when amount is entered. Do not indent manually. Round intermediste colailations to 5 decimal places, es. 1.54657 answers to 0 decimal places, eg. 5,125. Record journal entries in the order presented In the problem.)