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Question 55 of 55 - / 16.36 Ayayai Factory provides a 2-year warranty with one of its products which was first sold in 2025.
Question 55 of 55 - / 16.36 Ayayai Factory provides a 2-year warranty with one of its products which was first sold in 2025. Ayayai sold $955,800 of products subject to the warranty. Ayayai expects $136,410 of warranty costs over the next 2 years. In that year, Ayayai spent $64,790 servicing warranty claims. Prepare Ayayai'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 O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation During 2025 12/31/25 (To record payment for warranty costs incurred) Cash Sales Revenue (To record sales) Debit Credit
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