Nash Company sells televisions at an average price of $855 and also offers to each customer a separate 3 year warranty contract for $84 that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 327 televisions and 297warranty contracts for cash. It estimates the 3 year warranty costs as $21 for parts and $31 for labor, and accounts for warranties separately. Assume sales occurred on December 32, 2016 and straight line recognition of warranty revenues occurs.

a. Record any necessary journal entries in 2017.

b.what liability relative to these transactions would appear on the December 31, 2017 balance sheet and how would it be classified?

c. in 2018 nash company incurred actual costs relative to 2017 television warranty sales of $2080 for parts and $4320 for labor. Record any necessary journal entries in 2018 relative to 2017 television warranties. Use inventory account to record the warranty expense.

d. what amounts relative to the 2017 television warranties would appear on the December 31, 2018 balance sheet and how would they be classified?