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Early in 2020, Kingbird Equipment Company sold 500 Rollomatics at $ 6.500 each. During 2020, Kingbird spent $ 20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis Your answer is correct Prepare 2020 entries for Kingbird. Assume that Kingbird estimates the total cost of servicing the warranties in the second year will be $ 40,000.0f no entry is required, select "No Entry for the account titles and enter for the amounts Credit account title ore automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit At Sale Cash 3250000 Sales Revenue During 2020 Warranty Expense 20000 Cash Supplies, Wages Payable 40000 Dec 31, 2020 Warranty Expense Warranty Libility Prepare 2020 entries for Kingbird 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 entero for the amounts. Credit account titles are automatically Indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, os 1.54657 answers to decimal places, s 5,125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 Cash 3250000 Sales Revenue Unearned Warranty Revenue Dec 31, 2020 Warranty Expense 20000 Cash Supplies Wages Payable CE Dec.31.2020 Unearned Warranty Reverie Warranty Revenue ite Account Titles and Explanation Debit Credit 2020 Cash 3250000 Sales Revenue Uneamed Warranty Revenue 2020 Warranty Expense 20000 Cash. Supplies, Wes Payable 20000 2020 Unearned Warranty Revenue Warranty Revenue

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