Sandhill Company sells televisions at an average price of $$812$ and also offers to each customer a separate $3-$year warranty contract for $$84$ that requires the company to perform periodic services and to replace defective parts. During $2025,$ the company sold $282$ televisions and $212$ warranty contracts for cash. It estimates the $3-$year warranty costs as $$19$ for parts and $$29$ for labor, and accounts for warranties separately. Assume sales occurred on December $31,2025,$ and straight$-$line recognition of warranty revenues occurs.

$($a$)$

Your answer is correct.

Record any necessary journal entries in $2025.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

In $2026,$ Sandhill Company incurred actual costs relative to $2025$ television warranty sales of $$2,190$ for parts and $$4,360$ for labor:

Record any necessary journal entries in $2026$ relative to $2025$ television warranties. Use "Inventory" account to record the parts portion of the warranty expense. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record the warranty revenue earned.$)$