Bonita Company sells televisions at an average price of $910 and also offers to each customer a separate 3-year warranty contract for $87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 291 televisions and 251 warranty contracts for cash. It estimates the 3-year warranty costs as $20 for parts and $40 for labor, and accounts for warranties separately. Assume sales occurred on December 31, 2020, and straight-line recognition of warranty revenues occurs.

In 2021 , Bonita Company incurred actual costs relative to 2020 television warranty sales of $1,820 for parts and $3,930 for labor. amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Part 4 What amounts relative to the 2020 television warranties would appear on the December 31, 2021, balance sheet and how would they be classified? Bonita Company Balance Sheet (Partial) $ $