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.