Gonzalez Equipment Company sold 1000 Rollomatics during 2022 at $500 each. During 2022, Gonzalez spent $15,000 servicing the 2-year warranties on Rollomatic. All applicable transactions are on a cash basis.

(b) 23 Prepare 2022 entries for Gonzalez assuming that the warranties are not an integral part of the sale. 24 Assume that of the sales total, $80,000 relates to sales of warranty contracts. 25 Gonzalez estimates the total cost of servicing the warranties will be 26 Estimate revenues earned on the basis of costs incurred and estimated costs. (b) 23 Prepare 2022 entries for Gonzalez assuming that the warranties are not an integral part of the sale. 24 Assume that of the sales total, $80,000 relates to sales of warranty contracts. 25 Gonzalez estimates the total cost of servicing the warranties will be 26 Estimate revenues earned on the basis of costs incurred and estimated costs