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Monty Factory provides a 2 - year warranty with one of its products which was first sold in 2 0 2 5 . Monty sold
Monty Factory provides a year warranty with one of its products which was first sold in Monty sold $ of products subject to the warranty. Monty expects $ of warranty costs over the next years. In that year, Monty spent $ servicing warranty claims. Prepare Monty's journal entry to record the sales ignore cost of goods sold and the December adjusting entry, assuming the expenditures are inventory costs. If no entry is required, select No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.
Date Account Titles and Explanation
During
To record payment for warranty costs incurred
To record sales
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