Problem 13-07 (Part Level Submission) Sheridan Company sells a machine for $6,750 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 700 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 $389 per machine ($176 parts and $213 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? (a) Sale of machinery and warranty expense incurred in 2020. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash 4725000 4725000 Sales Revenue (To record sale) Warranty Expense Inventory Salaries and Wages Expen (To record warranty expense) SHOW.LINT OF ACCOUNTS List of Accounts Problem 13-07 (Part Level Submission) Accounts Payable Accounts Receivable Accumulated Depreciation-Plant Assets Allowance from Expropriation Asset Retirement Obligation Cash Depreciation Expense Dividends Payable Due to Customer Discount on Notes Payable FICA Taxes Payable Freight-In FUTA Taxes Payable Insurance Premium Payable Interest Expense Interest Payable Inventory Inventory of Premiums Land Improvements Lawsuit Liability Lawsuit Loss Litigation Expense or Loss Litigation Liability Loss from Expropriation Loss on ARO Settlement No Entry Notes Payable Oil Platform Payroll Tax Expense Plant Assets Premium Expense Premium Liability Purchases Purchase Discounts Purchase Returns and Allowances Retained Earnings Salaries and Wages Expense Dividends Payable Due to Customer Discount on Notes Payable FICA Taxes Payable Freight-In FUTA Taxes Payable Insurance Premium Payable Interest Expense Interest Payable Inventory Inventory of Premiums Land Improvements Lawsuit Liability Lawsuit Loss Litigation Expense or Loss Litigation Liability Loss from Expropriation Loss on ARO Settlement No Entry Notes Payable Oil Platform Payroll Tax Expense Plant Assets Premium Expense Premium Liability Purchases Purchase Discounts Purchase Returns and Allowances Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Sales Tax Payable SUTA Taxes Payable Trucks Unearned Sales Revenue Unearned Warranty Revenue Union Dues Payable Warranty Expense Warranty Liability Warranty Revenue Withholding Taxes Payable