Sawyer Appliances sells heaters with an embedded 1-year warranty as well as an optional 2-year extended warranty. In 20X7, Sawyer sold 50 heaters with the extended warranty, which costs $10 for each heater. In 20X9, Sawyer spent $75 fixing heaters under the extended warranty. Sawyer recognized the revenue on the extended warranties using the straight-line method.

a. Record the sale of the extended warranties in 20X7.

b. Record the repairs performed under the extended warranties in 20X9.

c. Record the revenue to be recognized on the extended warranties in 20X9.