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 2020, 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 December 31, 2020, and straight-line recognition of warranty revenues occurs.

In 2021, Wildhorse Company incurred actual costs relative to 2020 television warranty sales of $2,190 for parts and $4,010 for labor. Record any necessary journal entries in 2021 relative to 2020 television warranties. Use "Inventory" account to record the warranty expense.