four lower is partially correct Prepare 2020 entries for Headland assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $55,000 relates to sales of warranty contracts Warranty costs incurred in 2020 were $20,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round Intermediate calculations to 5 decimal places, eg. 1.54657 answers to O decimal places, eg. 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation. At Sale During 2020 Dec 31, 2020 (To record warranty revenue), Debit Credit Early in 2020, Headland Equipment Company sold 500 Rollomatics at $6,300 each. During 2020, Headland spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis. (a) Your answer is correct. Prepare 2020 entries for Headland. Assume that Headland estimates the total cost of servicing the warranties in the second year will be $34,000 0f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation At Sale Cash Sales Revenue During 2020 Warranty Expe Cash Supplies Wages Payable Dec 31 2000 Warranty Expe Warranty by Debit 3150000 20000 34000 Credit 31500 200 3400