On January 2, 2020, Ayayai Company sells production equipment to Fargo Inc. for $49,000. Ayayai includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Ayayai incurs costs related to warranties of $930. At December 31, 2020, Ayayai estimates that $620 of warranty costs will be incurred in the second year of the warranty. Your answer is partially correct. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (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 O for the amounts.) Debit Credit Date Jan. 2, 2020 Account Titles and Explanation Cash 49,000 Sales Revenue 49,000 During 2020 Warranty Expense 930 wa 930 Dec. 31, 2020 Warranty Expense Warranty Liability e Textbook and Media List of Accounts