1. Compute the amount of warranty expense for 2020 and 2021. (Enter your answers in millions of dollars.) 2. Prepare journal entries to record both the warranty expense for 2021 and the payments made under the warranty during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of dollars.) 1 Record to recognize the warranty expense for the year. 2 Record to settlements made under the product warranty. Credit Note : O = journal entry has been entered 3-a. Compute the ratio of the warranty expense to net revenues for the three years. The Standard warranty liability had a balance of $125 at the beginning of 2019. (Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 3-b. Has the ratio increased or decreased during the three-year period? 4. Based on the limited information available about the warranty expense and settlements during these three years, should IBM reduc the ratio of the warranty expense to net sales in future years? Yes No 5-a. Compute the extended warranty revenue recognized during 2020 and 2021. (Enter your answers in millions of dollars.) 5-b. Prepare the journal entry to record the revenue recognized in 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions of dollars.) Journal entry worksheet Record to the recognize revenue related to extended warranties. Note: Enter debits before credits