Provide the journal entries for 2016 using the revenue deferral approach to account for warranties

QUESTION 3 On January 1, 2016, XYZ Inc. delivers a machine to a buyer. The agreed-upon price is $9,000 Included in this price is a twenty-four-month service contract, which stipulates that the system wil be fixed or replaced if it does not perform to certain specifications and 20ourss the system over this period. The stand-alone price for the maintenance serv ice is $2,000. The buyer also opted for the twenty-four-month warranty, which XYZ sells separately for $1,00. The company also estimates that based on past experience, the warranty costs for defective machinery should be estimated at $450 per year. During Year 1, 8 hours of service are performed, as expected, at a cost of $800, and warranty work resulted in expenditures of $300. Provide the journal entries required for 2016, assuming that XYZ uses the revenue deferral approach to account for its warranties. DATE EXPLANATION and ACCOUNTS