Street Factory provides a 3-year warranty with one of its products which was first sold in 2012. In that year, Street spent $80,000 servicing warranty claims. At year-end, Street estimates that an additional $300,000 will be spent in the future to service warranty claims related to 2012 sales. Prepare Street’s JOURNAL ENTRY to record the $80,000 expenditure, and the December 31 adjusting entry.