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Sweet Factory provides a 2-year warranty with one of its products which was first sold in 2025. Sweet sold $940,900 of products subject to the
Sweet Factory provides a 2-year warranty with one of its products which was first sold in 2025. Sweet sold $940,900 of products subject to the warranty. Sweet expects $122,010 of warranty costs over the next 2 years. In that year, Sweet spent $74,460 servicing warranty claims. Prepare Sweet'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 Debit Credit
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