Problem 156 (Part Level Submission) Merritt Equipment Company sells computers for $1,740 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 890 computers on credit. Based on past experience, the company has estimated the per unit 2-year warranty costs as $40 for parts and $60 for labor. (Assume sales all occur at December 31, 2017.) In 2018, Merritt incurred actual warranty costs relative to 2017 computer sales of $10,800 for parts and $16,200 for labor. (a) Your answer is partially correct. Try again. Under the expense warranty approach, give the entries to reflect the above transactions (accrual method) for 2017 and 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2017 Cash, Inventory, Accrued Payroll 1548600 1548600 Sales Revenue (To record sale of computers) 2017 Warranty Expense 89000 Warranty Liability 89000 (To record liability against warranty costs) 2018T Warranty Liability 89000 (To record liability against warranty costs) 2018 Warranty Liability 89000 Cash, Inventory, Accrued Payroll 27000 x Warranty Expense 62000 Open Show Work Click if you would like to Show Work for this question: Rv accecina this Ouastion Accictance.vou will oarn whilo vou aarn naints bacod on tbo Point Petential Dalicy.cot by vour inctructo