Whispering Factory provides a 2-year warranty with one of its products which was first sold in 2025. Whispering sold $1,044,600 of products subject to the warranty. Whispering expects $135,320 of warranty costs over the next 2 years. In that year, Whispering spent $74,380 servicing warranty claims. Prepare Whispering'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 0 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
Debit
Credit
During 2025
(To record payment for warranty costs incurred)
(To record sales)