Early in 2017, Crane Equipment Company sold 400 Rollomatics during 2017 at $6,400 each. During 2017, Crane spent $22,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. (a) 2 Your answer has been saved and sent for grading. See Gradebook for score details. Prepare 2017 entries for Crane. Assume that Crane estimates the total cost of servicing the warranties will be $60,000 for 2 years. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit At Sale Cash 2560000 Sales Revenue 2560000 During 2017 Warranty Expense 22000 Cash 22000 Dec. 31, 2017 Warranty Expense 38000 Warranty Liability 38000 Show Work is REQUIRED for this question: Open Show Work Prepare 2017 entries for Crane assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $61,000 relates to sales of warranty contracts. Crane estimates the total cost of servicing the warranties will be $60,000 for 2 years. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to o decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit (To record warranty revenue)