Sony introduces a new compact music player that carries a two-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 3% of sales. By the end of the first year of selling the product, total sales are $31 million, and actual warranty expenditures are $300,000.

Determine the financial statement effects of accounting for remaining expected future warranty costs as of December 31. (Amounts to be deducted should be entered with minus sign. Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.)

Sony introduces a new compact music player that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 3% of sales. By the end of the first year of selling the product, total sales are $31 million, and actual warranty expenditures are $300,000. Determine the financial statement effects of accounting for remaining expected future warranty costs as of December 31 . (Amounts to be deducted should be entered with minus sign. Enter your answers in dollars, not millions. For example, $5.5 million should be entered as 5,500,000