P3. Hawk, Inc. sold ten heavy production machines with 2-year warranties for $300,000 each in 2018. At the end of 2018, it was estimated that the total warranty costs be $60,000 for the machines sold in 2018. Actual warranty costs incurred in2018 were $27,000 and will be $20,000, and $11,000 in 2019 and 2020, respectively.

Instructions: Prepare any necessary journal entries for

1) The estimated total warranty costs on 12/31/2018,

2) The actual warranty costs incurred in 2018, 2019, and 2020.