Monty Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2017. In that year, Monty sold products for $2.51 million and spent $77,700 servicing warranty claims. At year end, Monty estimates that an additional $504,900 will be spent in the future to service warranty claims related to the 2017 sales. Prepare entries for the warranty that recognize the sale as a multiple deliverable with the warranty as a separate service that Monty bundled with the selling price of the product. Sales in 2017 occurred evenly throughout the year. Warranty agreements similar to this are available separately, are estimated to have a stand-alone value of $642,300, and are earned over the warranty period as follows: 2017 - 25%, 2018 - 50%, and 2019 - 25%. Also prepare the entries to record the $77,700 expenditure for servicing the warranty during 2017, and the adjusting entry required at year end, if any, under the revenue approach used for service-type warranties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)