Bramble Company sells televisions at an average price of $ 824 and also offers to each customer a separate 3-year warranty contract for $ 91 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 234 warranty contracts for cash. It estimates the 3-year warranty costs as $ 19 for parts and $ 39 for labor, and accounts for warranties separately. Assume sales occurred on December 31, 2020, and straight-line recognition of warranty revenues occurs.

Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

2. What liability relative to these transactions would appear on the December 31, 2020, balance sheet and how would it be classified?

In 2021, Bramble Company incurred actual costs relative to 2020 television warranty sales of $ 2,190 for parts and $ 3,910 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory" account to record the warranty expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record the warranty revenue earned.)
(To record the warranty expense.)

4. What amounts relative to the 2020 television warranties would appear on the December 31, 2021, balance sheet and how would they be classified?

Account List:

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Plant Assets
• Allowance from Expropriation
• Asset Retirement Obligation
• Cash
• Depreciation Expense
• Dividends Payable
• Due to Customer
• Discount on Notes Payable
• FICA Taxes Payable
• Freight-In
• FUTA Taxes Payable
• Insurance Premium Payable
• Interest Expense
• Interest Payable
• Inventory
• Inventory of Premiums
• Land Improvements
• Lawsuit Liability
• Lawsuit Loss
• Litigation Expense or Loss
• Litigation Liability
• Loss from Expropriation
• Loss on ARO Settlement
• No Entry
• Notes Payable
• Oil Platform
• Payroll Tax Expense
• Plant Assets
• Premium Expense
• Premium Liability
• Purchases
• Purchase Discounts
• Purchase Returns and Allowances
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Sales Tax Payable
• SUTA Taxes Payable
• Trucks
• Unearned Sales Revenue
• Unearned Warranty Revenue
• Union Dues Payable
• Warranty Expense
• Warranty Liability
• Warranty Revenue
• Withholding Taxes Payable