On August $1,2019,$ Pereira Corporation has sold $1,600$ Wiglows to Mendez Company at $$450$ each. Mendez also purchased a $1-$year service$-$type warranty on all the Wiglows for $$12$ per unit. In $2019,$ Pereira incurred warranty costs of $$9,200.$ Costs for $2020$ were $$7,000.$

Required:

$1.$ Prepare the journal entries for the preceding transactions.

$2.$ Show how Pereira would report the items on the December $31,2019,$ balance sheet.