Oriole Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Oriole sold 20,000 warranty contracts at $108 each. The corporation spent $175,000 servicing warranties during 2017, and it estimates that an additional $875,000 will be spent in the future to service the warranties. Prepare Orioles journal entry for the recognition of warranty revenue. Assume the service costs are inventory costs.