Woodmier Lawn Products introduced a new line of commercial sprinklers in $2023$ that carry a one$-$year warranty against manufacturer's defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate $2\%$ of sales. Sales of the sprinklers in $2023$ were $$3\mathrm{.}5$ million. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: