Sunland Ltd$.$ sells computers, computer accessories, and software. On its computer sales, the company provides a one$-$month warranty that is included in the cost of the computer. Claims under the warranties vary from replacing defective items to providing customers with refunds if they choose. During $2024,$ the estimated costs related to the one$-$month warranties was $$37,600,$ of which $$33,840$ had been incurred before year end $($ $$28,200$ for replacement items and $$5,640$ in refunds$).$

For an additional charge of $$94,$ Computers Galore also offers extended warranty coverage for two years on its computers. This amount is expected to cover the costs associated with the extended warranties. During $2024,$ Computers Galore sold $752$ two$-$year warranties. The costs incurred during the year for replacements under these warranties amounted to $$29,140.$ Based on experience, the company estimates that its total warranty costs over the two$-$year coverage period will be $$56,400,$ which it expects will occur evenly over the warranty period.

$($a$1)$

Prepare journal entries to record the warranty transactions for $2024.($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. List all debit entries before credit entries$)$

Account and explanation

Debit

Credit

$($To record estimated cost related to $1$ month warranties$)$

$($To record cost incurred related to $1$ month warranties$)$

$($To record sale of $2$ year extended warranties$)$

$($To record cost incurred related to $2$ year extended warranties$)$

$($To record warranty revenue$)$