5 QUESTION DATA: Barb Inc. sells high-quality industrial-style blenders at an average price of $750, which includes a standard one-year warranty that 6 covers both parts and labour. The cost of each blender sold is $450. The company also offers each customer a separate two-year extended warranty 7 contract for $120 covering periodic services and to replace defective parts. The extended warranty begins one year after the purchase date. 8 9 On December 31, 2020, Barb Inc. sold 1,500 blenders and 1,000 extended warranty contracts on account. 20% of Blenders sold are expected to require 0warranty repairs within the first year. 1 2 Past experience shows average costs on each blender brought in for warranty repairs in the first year after purchase amount to $225 per blender: $150 3 for labour and $75 for parts. 4 Barb Inc. estimates the average two-year extended warranty costs as $100 per blender. All warranty costs are expected to be incurred evenly over the warranty period. REQUIRED: Answer parts (1) and (2) based on the information above. (1). Prepare the necessary journal entries for 2020 to account for the Blender Sales and all warranty related items noted above,