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Vaughn Factory provides a 2-year warranty with one of its products which was first sold...

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Accounting

Vaughn Factory provides a 2-year warranty with one of its products which was first sold in 2025. Vaughn sold $932,500 of products subject to the warranty. Vaughn expects $137,130 of warranty costs over the next 2 years. In that year, Vaughn spent $66,530 servicing warranty claims. Prepare Vaughn'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 Entro for the account titles and enter 0 for the amounts. Credit account titles are outomatically indented when amount is entered. Do not indent manually, List all debit entries before creditentries,
Date Account Titles and Explanation
During 2025
(To record payment for warranty costs incurred)
(To record sales)
1231?25
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