eniu assura s Computers sells computers and offers an nce-type warranty that covers all repair costs ding parts and labor, for one year after the date of in hase. Genius also sells a service-type warranty contract urc a covers all parts and labor for three years after the base arranty expires. The company estimates that the vice-type warranty will be used 40% in the first year, 5% in the second, and 25% in the third year of the contract. tha 3 entry to record the cash receipt for the service-type warranty during the year of sake Account Year of the Sale Now, prepare the journal entry to record the service-type revenue recognized at the end of the year afther the sale Account Year after the Sale Finally, prepare the journal entry to record the actual cost of repairs under the service-type warranty contract Account Year after the Sale (10) (12) 8: More Info In the year in which the computers were sold, the company also sold 10,000 service-type warranties at a price of $200 per contract, and received cash. Genius sold the contracts at the end of the year and did not recognize any warranty revenue in the year of the sale. The firm did not make any actual repairs in the year of the sale covered by the assurance-type warranty. During the following year, the company incurred $45,000 in actual warranty claims that are now only covered under the service-type warranty contract. The repair costs indluded $31,00 in parts and $14,000 i lbor (unpaid)