Flounder Factory provides a 2-year warranty with one of its products which was first sold in 2025. Flounder sold $909,800 of products
subject to the warranty. Flounder expects $124,480 of warranty costs over the next 2 years. In that year, Flounder spent $73,090
servicing warranty claims. Prepare Flounder'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)
12/31/25