27 of 28 Marks Part B (4 marks) In 2017, Trixie's Cycles Inc. sold 5,000 mountain bikes. For the first time, Trixie offered an in-store, no-charge, two-year assurance-type warranty on each bike sold. Company management estimates that the average cost of providing the warranty is $8 per unit in the first year of coverage and $11 per unit in the second year Trixie's ranty-related expenditures totaled $36,500 for labor costs during 2017 a Instructions: Prepare the summary journal entry to recognize Trixie's warranty expense in 2017 b. Prepare the summary journal entry to recognize the warranty service provided in 2017 C Determine the total liability for warranty obligations that will be reported on the company's balance sheet at year-end. Assuming that all sales transactions and warranty service took place on the last day of the year, how much of the warranty obligation will be classified as a current liability? As a non-current liability