proper journal entries

Every watch sold has a complete two-year warranty. Customers have the option to buy, for an amount equal to 10% of the watch's sales price, an extended warranty for an additional four years of coverage. The total amount received from customers in 2023 for extended warranty protection was $1,000,000. Costs incurred in 2023 for repairs made under the two-year basic warranty amounted to $300,000. Based on industry standards, the company estimates that repairs on the original two-year warranty will be 2% of sales revenue. During 2023 , the following entries for warranties were recorded