Prince sells a certain product for $20,000. Included in this price is an implied service contract of $800. Fifty machines were sold in 2010. Warranty expense incurred during 2010 amounted to $25,000. The company uses the sales warranty accrual method. Which entry would probably not be made in 2010?
a. Cash 1,000,000
Unearned Warranty Revenue 40,000
b. Unearned Warranty Revenue 25,000
Warranty Revenue 25,000
c. Cash 40,000
Warranty Revenue 40,000
d. Warranty Expense 25,000