3. Steel Manufacturing began operations in January 2024. Steel sells computers that carry a two- year manufacturer's warranty against defects in workmanship. Steel's management projects that 5% of the computers will require repair during the first year of the warranty while approximately 3% will require repair during the second year of the warranty. The computers sell for $1,600 each. The average cost to repair a computer is $300. The company sells the computers to retail customers who must pay a 7\% sales tax. Sales and warranty information for 2024 and 2025 are as follows: 2024: Sold 2,000 computers on account; incurred warranty expenditures of $36,000. 2025: Sold 3,000 computers on account; incurred warranty expenditures of $60,000. Required: a. Prepare journal entries that summarize the sales and all aspects of the warranty for 2024. b. Prepare journal entries that summarize the sales and all aspects of the warranty for 2025