Kingbird Factory provides a 2-year warranty with one of its products which was first sold in 2017. Kingbird sold $1,044,600 of products subject to the warranty expects $135,320 of warranty costs over the next 2 years. In that year, Kingbird spent $74,380 servicing warranty claims sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.

Date Account Titles and explanation Debit Credit

During 2017 ___________________________________ ______________ _____________________

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2017 ______________________________________ _____________________ ______________________________

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12/31/17 ________________________________________ _________________________ ________________________________

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