5 P13-68 (Extended Warranties) Floating Company sells hot tubs at an average price of $2,100 and also offers to each customer a separate 5-year warranty contract for $215 that requires the company to perform peri- odic services and to replace defective parts. During 2014, the company sold 625 hot tubs and 460 warranty contracts for cash. It estimates the 5-year warranty costs as $45 for parts and $90 for labor and accounts for warranties separately. Assume sales occurred on December 31, 2014, and straight-line recognition of war- ranty revenues occurs. Instructions (a) Record any necessary journal entries in 2014. (b) What liability relative to these transactions would appear on the December 31, 2014, balance sheet and how would it be classified? In 2015, Floating Company incurred actual costs relative to 2014 hot tub warranty sales of $4,100 for parts and $6,800 for labor. (c) Record any necessary journal entries in 2015 relative to 2014 hot tub warranties. (d) What amounts relative to the 2014 hot tub warranties would appear on the December 31, 2015, bal- ance sheet and how would they be classified