Chart of Accounts On August 1,2016, Pereira Corporation has sold, on account, 1,600 Wiglows to Mendez Company at $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $12 per unit. In 2016 , Pereira incurred warranty costs of $9,000. Costs for 2017 were $7,200. Required: 1. Prepare the journal entries for the preceding transactions. 2. Show how Pereira would report the items on the December 31, 2016, balance sheet. ppare the necessary joumal entries to record: 1. the sale of Wiglows and service warranty on account on August 1.2016 2. the warranty costs paid duning 2016 3. the warranty revenue earned in 2016 4. the warranty costs paid during 2017 5. the warranty rovenue eamed in 2017 Show how Pereira would report the liems on the December 31, 2016