Electric ATV Inc. sells battery-powered all-terrain vehicles for $6,000 each. Each ATV has a 1-year warranty. Electric ATV estimates that the average warranty cost is 3% of sales price. Electric ATV also sells a 2-year extended warranty for $300 each. During December 2019, Electric ATV sells 10,000 ATVs and 2,000 extended warranties for cash. Assuming that the company uses the periodic inventory method, prepare the journal entries associated with the sale and the warranty.
Account Name	DR	CR