Question $1$ of $5$

$\frac{-}{9}$

Novak Factory provides a $2-$vear warranty with one of its products which was first sold in $2025.$ Novak sold $$932\mathrm{.}500$ of products subject to the warranty. Novak expects $$137,130$ of warranty costs over the next $2$ years. In that year, Novak spent $$66,530$ servicing: warranty ctaims. Prepare Novaks journat entry to record the sales figsore cost of goods sold$)$ and the December $31$ adjusting entry. assuming the expenditures are inventory costs. If no entry is required, select $"$Wo Entry" for the account bitles and enter Ofor the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries$)$

$$ Debit

Credit

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$($To record payment for warranty costs incurred$)q,$

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$($To record sales$)$

$12/31/25$

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