Marigold Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Marigold sold products for $2.98 million and spent $74,000 servicing warranty claims. At year end, Marigold estimates that an additional $508,500 will be spent in the future to service warranty claims related to the 2020 sales. Prepare Marigolds journal entries to record the sale of the products, the $74,000 expenditure, and the December 31 adjusting entry under the assurance-type warranty approach. Ignore any cost of goods sold entry.

Date	Account Titles and Explanation	Debit	Credit
2020	(options) Materials, Cash, PayablesWarranty RevenueNo EntryWarranty LiabilityWarranty ExpenseCashSales RevenueUnearned Revenue
	Warranty RevenueSales RevenueCashWarranty LiabilityWarranty ExpenseUnearned RevenueMaterials, Cash, PayablesNo Entry
	(To record cash sale)
2020	(options) Sales RevenueUnearned RevenueCashWarranty RevenueWarranty LiabilityMaterials, Cash, PayablesWarranty ExpenseNo Entry
	Sales RevenueUnearned RevenueNo EntryWarranty RevenueMaterials, Cash, PayablesWarranty ExpenseCashWarranty Liability
	(To record warranty expense)
Dec. 31, 2020	(options) No EntryWarranty LiabilityWarranty ExpenseUnearned RevenueSales RevenueCashMaterials, Cash, PayablesWarranty Revenue
	No EntrySales RevenueWarranty LiabilityWarranty RevenueWarranty ExpenseUnearned RevenueMaterials, Cash, PayablesCash