Problem 6. On June 15, 2021 Canvas Corporation sold 500 widgets at a total price of $1.4 million, with a one-year warranty that the widgets were free from any defects. The cost of widgets sold is $600,000. The term of the assurance warranty is one year, with an estimated cost of $30,000. In 2021, $8,000 worth of widgets were returned on warranty and $12,000 worth were returned in 2022 Instructions What are the journal entries that Canvas Company should make in 2021 related to the sale and the related warranties, assuming: i. The warranty is included in the cost of the widget The warranty is sold separately and is valued at 2% of the selling price