Late in 2021, Jordon Inc. discovered a bug in a software product that was installed for several of Jordons clients. Although the bug was not Jordons fault, the CEO of the company feels strongly that Jordons software engineers should assist client with a programming solution since the company recommended the software. Jordon will begin contacting clients early in 2022 and should have fixes in place for all those affected by the end of the first quarter of 2022. The estimated cost is $7,000.

Since the transaction doesn't happen until 2022. Is a journal entry required for 2021? If so, how would you record it?