Blue Spruce Corporation sold 138 colour laser copiers in 2020 for $4,380 each, including a one-year warranty. Maintenance on each machine during the warranty period averages $300.

1)

Prepare entries to record the machine sales and the related warranty costs under the expense approach. Actual warranty costs incurred in 2020 were $15,700. Ignore any cost of goods sold entry. (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 Titles and Explanation Debit Credit (To record cash sales) (To record warranty expense) (To accrue warranty expense) Based on the information above and assuming that the cash basis is used, prepare the appropriate 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 Titles and Explanation Debit Credit (To record warranty expense)