Flounder Corporation sells home entertainment systems. The corporation also offers to sell its customers a two$-$year warranty contract as a separate service. During $2023$$Flounder sold $23,000$ warranty contracts at $$91$ each. The corporation spent $$170,000$ servicing warranties during $2023,$ and it estimates that an additional $$680,000$ will be spent in the future to service the warranties. Flounder recognizes warranty revenue based on the proportion of costs incurred out of total estimated costs.

$($a$)$

Prepare Flounder's journal entry for the sale of warranty contracts. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Cash

Unearned Revenue