Novak Company sold 420 copy-making machines in 2025 for $3,300 apiece, together with a one-yesr warranty. Repair costs for each machine during the warranty period average $320.

Prepare entries to record the sale of the copiers and the related warranty costs, assuming that the accrual method is used. Actual warranty costs incurred in 2025 were $26,100.

1. (To record sales)

2. (To record warranty costs incurred)

3. (To record warranty liability.)