Appliance Resellers Ltd. (ARL) sells gently used and refurbished appliances. The company provides a three-month warranty that is included in the cost of the appliance. Claims under the warranties vary from replacing defective parts to providing customers with new appliances if repairs cannot be made. During 2020, the estimated cost related to the three-month warranties was $39,500, of which $26,000 had been incurred before year end. ($18,100 on replacement appliances and $7.900 for parts) For an additional charge of $180, ARL also offers extended warranty coverage for three years on its refurbished appliances. This amount is expected to cover the costs associated with the extended warranties. During 2020, ARL sold 460 three-year warranty plans. The costs incurred during the year for repairs and replacements under these plans amounted to $12,600. Based on experience, the company estimates that its total warranty costs over the three-year coverage period will be $37,800, which it expects will occur evenly over the warranty period. (21) Prepare journal entries to record the warranty transactions for 2020. (Enter debit entries first followed by credit entries, Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Account and explanation Debit Credit (To record estimated cost related to 3 month warranties.) (To record cost incurred related to 3 month warranties.) (To record sale of 3 year extended warranties.) (To record cost incurred related to 3 year extended warranties.) (To record service revenue.)