Pronghorn Factory provides a 2-year warranty with one of its products which was first sold in 2017. Pronghorn sold $976,100 of products subject to the warranty. Pronghorn expects $119,940 of warranty costs over the next 2 years. In that year, Pronghorn spent $64,080 servicing warranty claims. Prepare Pronghorn's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.

Pronghorn Factory provides a 2-year warranty with one of its products which was first sold in 2017. Pronghorn sold $976,100 of products subject to the warranty. Pronghorn expects $119,940 of warranty costs over the next 2 years. In that year, Pronghorn spent $64,080 servicing warranty claims. Prepare Pronghorn's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If 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.) Date Account Titles and Explanation Debit Credit :: (1' 0 record sales) (To record warranty claims) 12/31/17 11 |' 11 E E