Windsor Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2017, Windsor sold 20,000 warranty contracts at $90 each. The corporation spent $192,000 servicing warranties during 2017, and it estimates that an additional $960,000 will be spent in the future to service the warranties.

Prepare Windsors journal entry for the recognition of warranty revenue. Assume the service costs are inventory cost

Unearned warranty revenue...300,000 Warranty revenue ......................300,000 (1,800,000*192,000)/1,152,000=300,000

I thought it was 300,000, but it was wrong. Please help me. Thanks!