2 Not yet answered Points out of 12.00 Flag question Merritt Equipment Company sells computers for $1,500 cash each and gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 1,200 computers. Based on past experience, the company estimated the total 2-year warranty costs as $40 for parts and $60 for labor per computer. Merritt also estimates that these costs would occur evenly throughout the 2-year period. Assume labor costs are paid with cash and fiscal year-end is December 31. Merritt incurred no actual warranty costs during 2020. In 2021, Merritt incurred actual warranty costs relative to 2020 computer sales of $16,000 for parts and $24,000 for labor. Instructions Write the necessary journal entries for 2020 and 2021 regarding the sales and the warranty, assuming sales all occur on December 31, 2020