Sunland Resellers Ltd$.($SRL$)$ sells gently used and refurbished appliances. The company provides a three$-$month warranty that is included in the cost of the appliance. Claims under the warranties vary from replacing defective parts to providing customers with new appliances if repairs cannot be made. During $2024,$ the estimated cost related to the three$-$month warranties w$35$ $$35,720,$ of which $$23,500$ had been incurred before year end $($$$17,860$ on replacement appliances and $$5,640$ for parts$).$

For an additional charge of $$141,$ SRL also offers extended warranty coverage for three years on its refurbished appliances. This amount is expected to cover the costs associated with the extended warranties. During $2024,5$RL sold $470$ three$-$year warranty plans. The costs incurred during the year for repairs and replacements under these plans amounted to $$14,100.$ Based on experience, the company estimates that its total warranty costs over the three$-$year coverage period will be $$42,300,$ which it expects will occur evenly over the warranty period.

Prepare journal entries to record the warranty transactions for $2024.($Credit account titles are outomatically indented when the amount is entered. Do not indent manually If no entry is required, select Wo 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 $3$ month warranties,$)$

$($To record cost incurred related to $3$ month warranties.$)$

$($To record sale of $3$ year extended warranties.$)$

record cost incurred related to $3$ year extended warranties.$)$

$($To record service revenue, $)$