Royale Company sells high-end servers and includes a three-year warranty. In 2020, the company sells 1,425 units. It was disclosed in notes to the companys financial statements that estimated warranty costs are accrued when products are sold. Assume that in 2020 warranty costs are estimated at $21,000 and that the related warranty work was actually paid for during 2021.

Required: Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2020