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Streep Factory provides a $2-$year warranty with one of its products which was first sold in $2025.$ Streep sold $$1,000,000$ of products

subject to the warranty. Streep expects $$125,000$ of warranty costs over the next $2$ years. In that year, Streep spent $$70,000$ servicing

warranty claims. Prepare Streep'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 O 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

During $2025$

Warranty Expense

$[$

Account Titles and Explanation

Debit

Credit

$($To record payment for warranty costs incurred$)$

$($To record sales$)$

$\frac{12}{31}\frac{?}{25}$