Sage Hill Inc. manufactures and sells computers that include an assurance-type warranty for 90 days. Sage Hill offers an optional extended coverage plan under which it will repair or replace any defective part for three years from the expiration of the assurance- type warranty. Because the optional extended coverage plan is sold separately, Sage Hill determines that the three years of the extended coverage represent a separate performance obligation. The total transaction price for the sale of a computer and the extended warranty is $3,480 on October 1, 2020. Sage Hill determines that the stand-alone selling price of each is $3,140 and $340, respectively. Further, Sage Hill estimates, based on historical experience, that it will incur $180 in costs to repair defects that arise within the 90-day coverage period for the assurance-type warranty. The cost of the equipment is $1,460. Prepare the journal entries to record the cash sale of the computer.cost of goods sold, and liabilities related to the warranties. (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 for the amounts.) Account Titles and Explanation Debit Credit Date October 1, 2020 Cash 3.480 3.140 Sales Revenue Warranty Liability Cost of Goods Sold 340 1,460 Inventory 1.460 October 1. 2020 (To record the cash sale of the computer) Warranty Liability 180 Inventory 180 (To record cost of goods sold)