Streep Factory provides a 2-year warranty with one of its products which was first sold in 2014. In that year, Streep spent $86,800 servicing warranty claims. At year-end, Streep estimates that an additional $436,100 will be spent in the future to service warranty claims related to 2014 sales. Prepare Streeps journal entry to record the $86,800 expenditure, 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.)

Streep Factory provides a 2-year warranty with one of its products which was first sold in 2014. In that year, Streep spent $86,800 servicing warranty claims. At year-end, Streep estimates that an additional $436,100 will be spent in the future to service warranty claims related to 2014 sales. Prepare Streep's journal entry to record the $86,800 expenditure, 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.) Date Account Titles and Explanation Debit Credit 2014 TWarranty Expense 436100 Warranty Liability 436100 12/31/14 Warranty Liability 434000 Warranty Revenue 434000 SHOW LIST OF ACCOUNTS LINK TO TEXT