Sage Factory provides a $2-$year warranty with one of its products which was first sold in $2025.$ Sage sold $$1,044,600$ of products

subject to the warranty. Sage expects $$135,320$ of warranty costs over the next $2$ years. In that year, Sage spent $$74,380$ servicing

warranty claims. Prepare Sage'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 $0$ 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 $2025$

Debit

Credit

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

$($To record sales$)$Sage Factory provides a $2-$year warranty with one of its