Exercise 13-11 Early in 2017, Larkspur Equipment Company sold 600 Rollomatics during 2017 at $6,100 each. During 2017, Larkspur spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Your answer is partially correct. Try again. Prepare 2017 entries for Larkspur. Assume that Larkspur estimates the total cost of servicing the warranties will be $54,000 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 Sales Revenue During 2017 Warranty Expense Warranty Liability Dec 31, 2017 Warranty Expense Warranty Liability SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Prepare 2017 entries for Larkspur assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $55,000 relates to sales of warranty contracts. Larkspur estimates the total cost of servicing the warranties will be $54,000 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 Cash Sales Revenue Unearned Warranty Revenue Warranty Expense Warranty Liability Warranty Liability Unearned Warranty Revenue Warranty Revenue (To record warranty revenue) Click if you would like to Show Work for this question: Open Show Work