Merritt Equipment Company sells computers for $1,200 each and also gives each customer a 1-year warranty that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 1,000 computers. Based on past experience, the company has estimated the 1-year warranty costs as $60 for parts and $40 for labor per unit. Actual warranty costs incurred in 2020 were $18,000 for parts and $12,000 for labor. (Assume sales all occur at December 31, 2020.) Instructions

(a) Prepare journal entry to record the sale of computeres.

(b) Prepare journal entry to record the warranty expense incurred in 2020.

(c) Prepare journal entry to record the warranty accural on December 31, 2020.