K Xavier Manufacturing Company manufactures and distributes small power tools. Xavier offers an assurance-type warranty that covers all repair costs, including parts and labor, for 2 years after the date of sale. During the current year, the company sold $8,150,000 in power tools to major retail stores. The company estimates that warranty costs will be 10% of sales. Xavier made no repairs in the year of the sale. However, during the following year, the company incurred $181,000 in actual warranty claims. The repair costs included $136.000 in parts and $45,000 in labor (unpaid). Prepare the journal entries necessary to record the base warranty in the year of the sale and the actual repairs incurred during the following year assuming that Xavier uses the cash basis. (Record debits first, then credits. Exclude explanations from any joumal entries. If no entry is required, select "No entry required" on the first line of the journal entry table and leave all remaining cells in the table blank) First, record the journal entry for base warranty in the year of the sale. Do not record the entry for actual repairs. We will do that in the next step. Account Cash Contingent Warranty Liability Year of Sale 8150000 8150000