Pronghorn Corporation sells televisions at an average price of $900 and they come with a standard one-year warranty. Ignore any cost of goods sold. Pronghorn 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, Pronghorn sold 315 televisions and 291 extended warranty contracts for cash. Company records indicate that warranty costs in the first year after purchase average $27 per set: $18 for parts and $9 for labour. Pronghorn estimates the average three-year extended warranty costs as $20 for parts and $60 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. Pronghorn uses the assurance-type approach for the one-year warranty and the service-type approach for the extended warranty contracts.

(a)

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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 0 for the amounts.)