Wright Machinery Corporation manufactures automobile engines for major automobile producers. The engines sell for $920 per engine. In addition, customers have the option to purchase a service-type warranty for $73 per engine that protects against any defects for a period of 5 years. During 2016, Wright sold 8,000 engines to National Motors. National Motors purchased warranties on all of the engines purchased. During 2016, Wright repaired defective motors at a cost of $94,400.
1. The sale of engines and service warranty on account during 2016 (one entry).
2. The warranty costs paid during 2016
3. The warranty revenue earned in 2016.
Additional Instructions
Model your entries after the Service-Type Warranties example in your textbook.
For grading purposes, use December 31 to record a summary transaction for entries that would have been made during the year.
GENERAL JOURNAL
Prepare the necessary journal entries to record:

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CHART OF ACCOUNTS Wright Machinery Corporation General Ledger ASSETS 111 Cash REVENUE 121 Accounts Receivable 411 Sales Revenue 141 Inventory 438 Warranty Revenue 152 Prepaid Insurance EXPENSES 181 Equipment 500 Cost of Goods Sold 189 Accumulated Depreciation 511 Insurance Expense LIABILITIES 512 Utilities Expense 211 Accounts Payable 521 Salaries Expense 230 Uneamed Warranty Revenue 532 Bad Debt Expense 231 Salaries Payable 540 Interest Expense 240 Estimated Warranty Liability 541 Depreciation Expense 250 Uneamed Revenue 551 Warranty Expense 261 Income Taxes Payable 559 Miscellaneous Expenses EQUITY 910 Income Tax Expense 311 Common Stock 331 Retained Eamings