Wildhorse Company sells televisions at an average price of $887 and also offers to each customer...

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Wildhorse Company sells televisions at an average price of $887 and also offers to each customer a separate 3-year warranty contract for $93 that requires the company to perform periodic services and to replace defective parts. During 2025, the company sold 318 televisions and 238 warranty contracts for cash. It estimates the 3-year warranty costs as $22 for parts and $42 for labor. and accounts for warranties separately. Assume sales occurred on December 31, 2025, and straight-line recognition of warranty revenues occurs. (a) 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 (b) What liability relative to these transactions would appear on the December 31, 2025, balance sheet and how would it be classified? WILDHORSE COMPANY Balance Sheet (Partial) $ (c) In 2026, Wildhorse Company incurred actual costs relative to 2025 television warranty sales of $2,190 for parts and $4,010 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 O 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 (To record the warranty revenue earned.) (To record the warranty expense.) 13 Debit Credit (d) What amounts relative to the 2025 television warranties would appear on the December 31, 2026, balance sheet and how would they be classified? WILDHORSE COMPANY Balance Sheet (Partial) Wildhorse Company sells televisions at an average price of $887 and also offers to each customer a separate 3-year warranty contract for $93 that requires the company to perform periodic services and to replace defective parts. During 2025, the company sold 318 televisions and 238 warranty contracts for cash. It estimates the 3-year warranty costs as $22 for parts and $42 for labor. and accounts for warranties separately. Assume sales occurred on December 31, 2025, and straight-line recognition of warranty revenues occurs. (a) 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 (b) What liability relative to these transactions would appear on the December 31, 2025, balance sheet and how would it be classified? WILDHORSE COMPANY Balance Sheet (Partial) $ (c) In 2026, Wildhorse Company incurred actual costs relative to 2025 television warranty sales of $2,190 for parts and $4,010 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 O 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 (To record the warranty revenue earned.) (To record the warranty expense.) 13 Debit Credit (d) What amounts relative to the 2025 television warranties would appear on the December 31, 2026, balance sheet and how would they be classified? WILDHORSE COMPANY Balance Sheet (Partial)