You have recently been hired as an Accountant for Sask Corp., a manufacturer of equipment. Sask follows ASPE but is considering becoming a public company in the next year. Sask provides a 2 year warranty on its equipment sales and you are examining whether to treat the warranty as a Service-type or Assurance-type warranty for accounting purposes. Revenue would be realized on a straight-line basis if the Service-type approach is followed. Your research has uncovered the following data: Sales Average cost of equipment Estimated warranty costs Actual 2021 costs incurred Fair value of warranty 80 units at $1,900 each (for simplicity assume all are cash sales and occur on December 31, 2020) $1,420 per unit $150 per unit $5,600 $200 per unit a) For both the Service-type and Assurance-type approaches, prepare all necessary Journal entries for 2020 2021 (11 marks) by which approach is preferable? Support your conclusion with applicable account balances as at December 31, 2020 (3 marks) 25 ... MacBook Air esc Bo DOO ODO TE 2 # 3 $ 4 % 5 6 & 7 You have recently been hired as an Accountant for Sask Corp., a manufacturer of equipment. Sask follows ASPE but is considering becoming a public company in the next year. Sask provides a 2 year warranty on its equipment sales and you are examining whether to treat the warranty as a Service-type or Assurance-type warranty for accounting purposes. Revenue would be realized on a straight-line basis if the Service-type approach is followed. Your research has uncovered the following data: Sales Average cost of equipment Estimated warranty costs Actual 2021 costs incurred Fair value of warranty 80 units at $1,900 each (for simplicity assume all are cash sales and occur on December 31, 2020) $1,420 per unit $150 per unit $5,600 $200 per unit a) For both the Service-type and Assurance-type approaches, prepare all necessary Journal entries for 2020 2021 (11 marks) by which approach is preferable? Support your conclusion with applicable account balances as at December 31, 2020 (3 marks) 25 ... MacBook Air esc Bo DOO ODO TE 2 # 3 $ 4 % 5 6 & 7