Answer:
Dr Cash 3,240,000
Cr Sales Revenue 3,240,000
Dr Warranty Expense 21,000
Cr Cash 21,000
Dr Warranty Expense 10,000
Cr Estimated Liabilities Warranties 10,000
Explanation:
Preparation of 2020 Journal entries
Dr Cash 3,240,000
Cr Sales Revenue 3,240,000
(600 x $5,400)
(Being to Record sale of Rollomatics )
Dr Warranty Expense 21,000
Cr Cash 21,000
( Being to record the amount spent on servicing during the year)
Dr Warranty Expense 10,000
Cr Estimated Liabilities Warranties 10,000
(31,000-21,000)
(Being To record the Estimated remaining warranty expense)
