Exercise 6-24 Splish Brothers Inc. manufactures and sells computers that include an assurance-type warranty for 90 days. Splish Brothers offers an optional extended coverage plan under which it will repair or replace any defective part for three years from the expiration of the assurance-type warranty. Because the optional extended coverage plan is sold separately, Splish Brothers determines that the three years of the extended coverage represent a separate performance obligation. The total transaction price for the sale of a computer and the extended warranty is $3,540 on October 1, 2017, and Splish Brothers determines the stand-alone selling price of each is $3,190 and $350, respectively. Further, Splish Brothers estimates, based on historical experience, it will incur $150 in costs to repair defects that arise within the 90-day coverage period for the assurance-type warranty. The cost of the equipment is $1,470. Splish Brothers Inc. makes only cash sales. Prepare the journal entries to record the sale of the computer, cost of goods sold, and liabilities related to the warranties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit October 1, 2017 Cash Warranty Expense Unearned Revenue Warranty Liability Sales Revenue To record sales revenue and contract liabilities related to warranties.) October 1, 2017 To record inventory sold and recognize cost of sales.)