Monty Corporation sells televisions at an average price of $860 and they come with a standard one-year warranty. Ignore any cost of goods sold. Monty also offers each customer a separate three-year extended warranty contract for $96 that requires the company to perform periodic services and replace defective parts. The extended warranty begins one year after the purchase date. During 2020, Monty sold 290 televisions and 266 extended warranty contracts for cash. Company records indicate that warranty costs in the first year after purchase average $27 per set: $15 for parts and $12 for labour. Monty estimates the average three-year extended warranty costs as $20 for parts and $20 for labour. Assume that all sales occurred on December 31, 2020 and that all warranty costs are expected to be incurred evenly over the warranty period. Monty uses the assurance-type approach for the one-year warranty and the service-type approach for the extended warranty contracts. Record any necessary journal entries in 2020. (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 O for the amounts.) Account Titles and Explanation (To record cash sales) (To accrue warranty expense) Debit Credit What liabilities relative to these transactions would appear on the December 31, 2020 SFP? How would they be classified? Monty Corporation Statement of Financial Position +A $ $ Assume that in 2021 Monty Corporation incurred actual costs relative to 2020 television warranty sales of $4,280 for parts and $3,370 for labour. Record any necessary journal entries in 2021 relative to the 2020 television 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 O for the amounts.) Account Titles and Explanation (To record settlement of warranty claims) (To adjust warranty liability balance) Debit Credit Assume that in 2021 Monty Corporation incurred actual costs relative to 2020 television warranty sales of $4,280 for parts and $3,370 for labour. What amounts relative to the 2020 television warranties would appear on the December 31, 2021 SFP? How would they be classified? Monty Corporation Statement of Financial Position +A +A Assume that in 2022 Monty Corporation incurred the following costs relative to the extended warranties sold in 2020: $2,060 for parts and $3,030 for labour. Record any necessary journal entries in 2022 relative to the 2020 television 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 O for the amounts.) Account Titles and Explanation Debit Credit (To remeasure unearned revenue) (To record settlement of warranty claims) Assume that in 2022 Monty Corporation incurred the following costs relative to the extended warranties sold in 2020: $2,060 for parts and $3,030 for labour. What amounts relative to the 2020 television warranties would appear on the December 31, 2022 SFP? How would they be classified? Monty Corporation Statement of Financial Position $ +A $ +A You are a potential investor and see warranty liability accruals on the SFP of the business you are interested in. The business includes warranties in the selling prices of its products and it accounts for these warranties using the assurance-type method. You have heard of numerous product recalls by competitors of the company you have selected. Are the costs of these product recalls included in the amount accrued for product warranties? The costs incurred for product recalls included in the liability for warranties accounted using the assurance-type m