1. Warranties Denton Company sells computers for $3,000 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2021, the company sold 1,000 computers. Based on prior experience, the company has estimated the total 2-year warranty costs as $90 for parts and $60 for labor per unit. (Assume sales all occur at January 31, 2021.) In 2021, Denton incurred actual warranty costs relative to 2021 computer sales of $50,000 for parts and $30,000 for labor. Instructions (a) Prepare the entries to reflect the above transactions for 2021 and 2022. (b) The transactions of part (a) create what balance under current liabilities in the 2021 balance sheet?