Landcaster, Inc., sells its products with a service contract. In Year 1, Landcaster sells 60 machines for $2,500 each. The selling price includes the estimated warranty costs of $225 per machine. In Year 1, Landcaster pays $22,500 for warranty costs. Prepare Landcaster's journal entries related to the sales and warranty in Year 1 using the sales warranty accrual method.