Swifty factory provides a 2 year warranty with one of its products which was first sold in 2017. Swifty sold $1,073,800 of products subject to the warranty. Swifty expects $133,420 of warranty cost over the next two years. In that year, $133,420 of warranty cost over the next two years. In that year, swifty spent $76,060 servicing warranty claims. Prepare Swiftys journal entry to record the sales (Ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.