Leppard AG sells DVD players. The company also offers its customers a 4-year warranty contract. Early in 2019, Leppard sold 20,000 warranty contracts at 99 each. The company spent 180,000 servicing warranties during 2019. Prepare Leppard's journal entries for (a) the sale of contracts, (b) the cost of servicing the warranties, and (c) the recognition of warranty revenue. Assume the service costs are inventory costs.