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Pina Company sells a machine for $ 6,660 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide

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Pina Company sells a machine for $ 6,660 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 620 machines in 2020 (warranty expense is incurred half in 2020 and half in 2021). As a result of product testing, the company estimates that the warranty cost is $ 277 per machine ($ 118 parts and $ 159 labor). Use "Inventory" account to record the warranty expense, Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? Sale of machinery and warranty expense incurred in 2020. (If no entry is required, select "No Entry" for the account titles and en for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record sale) 7 (To record warranty expense) Warranty accrual on December 31, 2020. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit eTextbook and Media A Warranty costs incurred in 2021. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and explanation Debit Credit e Textbook and Media What amount, if any, is disclosed in the balance sheet as a liability for future warranty costs as of December 31, 2020? Warranty liability e Textbook and Media

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