Blue Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2025, the corporation sells for cash 397 computers at a unit price of $2,490. On the basis of past experience, the 2-year warranty costs are estimated to be $154 for parts and $194 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2025.) The warranty is not sold separately from the computer. Your answer is partially correct. Record any necessary journal entries in 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sales Revenue Warranty Expense Warranty Liability Debit 988,530 138,156 Credit 988,530 138.156 Your answer is partially correct. What liability relative to these transactions would appear on the December 31, 2025, balance sheet and how would it be classified? BLUE CORPORATION Balance Sheet (Partial) December 31, 2025 Current Liabilities. Warranty Liability Current Assets Cash eTextbook and Media List of Accounts 138,156 988,530 3 X Your answer is incorrect. In 2026, the actual warranty costs to Blue Corporation were $21,150 for parts and $43,620 for labor. Record any necessary journal entry in 2026. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation. Warranty Expense Warranty Liability Debit Credit Cash eTextbook and Media List of Accounts