Crane manufactures wireless routers for commercial and home use. Its' fiscal year end is December 31. The company reported total sales of $22,400,000 on account in 2008. Assume for this question that 2008 sales occur on December 31, 2008. The cost of the merchandise sold was $10,000,000. Crane offers an assurance-type warranty (basic warranty) that covers all repair costs, including parts and labor, for one year after the date of sale. The company estimates that warranty costs will amount to 8% of total sales. In 2008, the company also sold 90,000 service-type warranties (additional warranties) at a price of $170 per contract and received cash for them. Crane sold the contracts at the end of the year and did not recognize any warranty revenue in the year of the sale. The service-type warranty covers all parts and labor three years following the expiration of the assurance-type warranty. The company estimates that the service-type warranty will be used 70% in the first year of the contract (2010), 18% in the second year (2011) and 12% in the third year. During the year ended December 31, 2009, customers made warranty claims of $573,000 against the assurance-type warranty. Of this amount, $395,000 was paid for parts and the $178,000 balance was incurred for labor. During the following year, the company incurred $370,000 in actual warranty claims that are now only covered under the service-type warranty contract. These repair costs included $202,000 in parts and $168,000 in labor. Prepare the appropriate entries required (under IFRS unless specifically mentioned otherwise), to record the following: 1. The sales of the routers for the year, 2008. Note that the company uses the perpetual inventory method. 2. Accrual for the estimated warranty costs for 2008. 3. Actual repair costs for 2009. 4. The sale of the service-type contracts in 2008. 5. The recognition of the service revenues in the three years relevant to the service-type contracts. Be sure to state the relevant year for which each entry is made. 6. Actual repair costs for the first year under the service-type contracts. 7. How would Crane classify the liabilities for the assurance-type and the service-type contracts on the balance sheet as at December 31, 2008