On January 1, 2020, Pharoah Ltd. sold on account 1,400 units of its product for a total price of $569,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Pharoah estimates that the cost will be $23,600. The cost of the units is $447,000. In addition, the company sold extended warranties related to 600 units for a one-year period beyond the one-year assurance period at a cost of $15,100. By the companys year-end, December 31, 2020, no warranty costs were incurred. By the companys year-end, December 31, 2021, $8,145 of warranty costs were incurred and paid in cash.

Prepare the appropriate journal entries for 2020 and 2021. (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.)

Prepare the appropriate journal entries for 2020 and 2021. (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.) Account Titles and Explanation Debit Date Credit January 1/20 Accounts Receivable 584,100 23,600 Warranty Expense 23,600 Warranty Liability 15100 Unearned Revenue 569000 Sales Revenue (To record the sale) 447,000 Cost of Goods Sold January 1/20 447,000 Inventory (To record the cost of goods sold) December 31/21 (To close out unused warranty) December 31/21 Warranty Expense 8,145 Cash