Omni Computers sells computers and offers an assurance-type warranty that covers all repair costs, including parts and labor, for one year after the date of purchase. Omni also sells a service-type warranty contract that covers all parts and labor for three years Prepare the journal entries required to record the eff after the base warranty expires. The company estimates that the offering the service-type warranty contract in the year of the sa service-type second, and 14% in the third year of the contract. 1 (Click the icon to view additional information.) Requirement and during the following year Exclude explanations from any journal entries.) ects of warranty will be used 48% in the first year, 38% in the Record debits first, then credits. First, prepare the jou More Info Account In the year in which the computers were sold, the company also sold 11,000 service-type warranties at a price of $206 per contract, and received cash. Omni sold the contracts at the end of the year and did not recognize any warranty revenue in the year of the sale. The firm did not make any actual repairs in the year of the sale covered by the assurance-type warranty. During the following year, the company incurred $54,000 in actual warranty claims that are now only covered under the service-type warranty contract. The repair costs included $35,500 in parts and $18,500 in labor (unpaid)