Flounder Equipment Limited sold 480 Rollomatics on account during 2020 for $5,900 each. Ignore any cost of goods sold. During 2020, Flounder spent $27,300 servicing the two-year warranties that are included in each sale of the Rollomatic. All servicing transactions were paid in cash.

Prepare the 2020 entries for Flounder using the assurance-type (expense-based) approach for warranties. Assume that Flounder estimates (accurately) that the total cost of servicing the warranties will be $109,200 for two years and payments for completed warranty repairs are paid in cash.