Brooks 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 2014, the corporation sells for cash 504 computers at a unit price of $3,100. On the basis of past experience, the 2-year warranty costs are estimated to be $166 for parts and $196 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2014.) The warranty is not sold separately from the computer.

Record any necessary journal entries in 2014, applying the cash-basis method. (If no entry is required, select titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is manually.) Account Titles and Explanation Debit Credit Cash 1562400 Sales Revenue 1562400 SHOW LIST OF ACCOUNTS LINK TO TEXT Record any necessary journal entries in 2014, applying the expense warranty accrual method. (If no entry is re the account titles and enter 0 for the amounts. Credit account titles are automatically indented when tl indent manually.) Account Titles and Explanation Debit Credit Cash 1562400 Sales Revenue (To record the sale.) Warranty Expense 1562400 1122200 Warranty Liability 1122200