Suppose the company in the previous question offers an extended warranty

two years, which he sells, separate from the computer. In 2020 warranty sales

extended amounted to $ 20,000. During 2020 the company incurred $ 2,500 in costs

related to extended warranties. In the State of Situation of December 31

2020 the company will recognize:

to. Warranties payable for $ 17,500

b. $ 20,000 unearned warranty revenue

c. Warranties payable for $ 2,500

d. $ 17,500 unearned warranty revenue