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Culver Corp. provides at no extra charge a two-year warranty with one of its products,...

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Accounting

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Culver Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Culver sold products for $2.02 million and spent $70,200 servicing warranty claims. At year end, Culver estimates that an additional $516,700 ill be spent in the future to service warranty claims related to the 2020 sales. Prepare Culver's journal entries to record the sale of the products, the $70,200 expenditure, and the December 31 adjusting entry under the assurance-type warranty approach. Ignore any cost of goods sold entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2020 v (To record cash sale) 2020 (To record warranty expense) Dec 31, 2020

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