ACME Incorporated sold 100 conveyer systems on account during 2021 for $900 each. Ignore any cost of goods sold. During 2021, ACME spent $18,000 servicing the two-year warranties that are included in the sale of each watering system. ACME estimates based on past experience that the total cost of servicing the warranties will be 30,000. Payments for completed warranty repairs are paid in cash. ACME has a December 31 year end and follows ASPE. Required: 1. Prepare the 2021 entries using the assurance-type (expense-based) approach for warranties. (3 marks) 2. Prepare the 2021 entries using the service-type approach for warranties. Assume that 6% of the sales total relates to the warranties and warranty revenues are recognized based on the proportion of costs incurred out of the total estimated costs. (4 marks)