Metlock Factory provides a 2-year warranty with one of its products which was first sold in 2017. Metlock sold $1,077,700 of products subject to the warranty. Metlock expects $123,000 of warranty costs over the next 2 years. In that year, Metlock spent $63,400 servicing warranty claims. Prepare Metlocks journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.

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