Pharoah Factory provides a 2-year warranty with one of its products which was first sold in 2017, Pharoah sold $1, 066, 600 of products subject to the warranty Pharoah expects $115, 420 of warranty costs over the next 2 years. In that year, Pharoah spent $70, 410 servicing warranty claims. Prepare Pharoah's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditure are inventory costs. (It no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)