Prepare $2020$ entries for Blue assuming that the warranties are not an integral part of the sale $($a service$-$type warranty$).$ Assume

that of the sales total, $$61,000$ relates to sales of warranty contracts. Warranty costs incurred in $2020$ were $$20,000.$ Estimate

revenues to be recognized on a straight$-$line basis. $($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. Round intermediate

calculations to $5$ decimal places, e$.$g$.1\mathrm{.}54657$ answers to $0$ decimal places, e$.$g$.5,125.$ Record journal entries in the order presented in the

problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record warranty revenue$)$