2 Journal Entries This question consists of two independent parts. 1. A gym's sales of annual memberships for $40,000 have been included in Membership foes revenue. This amount was received on July 1, 2020 for memberships which are valid from July 1, 2020 to June 30, 2021. Examine whether it is appropriate to include the entire $40,000 in revenues for the year ended December 31, 2020. If it is appropriate, provide justification. If it is not appropriate, explain why and prepare the required journal entry to adjust the accounts 2. Welefon Equipment Company sells computers for $2,000 each and also gives each customer a 1-year warranty that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold for cash 500 computers that had a cost of $700 each. Based on post experience, the company has estimated warranties to be 3% of sales. During 2020, the Company reimbursed customers for 10 defective computers, which were returned to the manufacturer. Record the journal entries to reflect the above transactions (accrual method) for 2020. Assume sales are on a cash basis and that a perpetual inventory system is used % 3 Do not enter your answer in this space. You will be required to upload your response(s) at the end of your exam Notes Question 2 Notes