Buffalo 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 $2020,$ the corporation sells for cash $427$ computers at a unit price of $$2,730.$ 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 $31,2020.)$ The warranty is not sold separately from the computer.

$($a$)$

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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 the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

Cash

Warranty Expense

Sales Revenue

$1,165,170$

Warranty Liability