Pronghorn Factory provides a 2-year warranty with one of its products which was first sold in 2017. Pronghorn sold $932,300 of products subject to the warranty. Pronghorn expects $118,280 of warranty costs over the next 2 years. In that year, Pronghorn spent $72,730 servicing warranty claims. Prepare Pronghorns journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.

Account Titles and Explanation Debit Credit Date 2017 (To record sales) During 2017 (To record warranty claims) 12/31/17