Leppard Corporation sells smart home systems. The corporation also offers its customers a 4-year warranty contract. During 2025, Leppard sold 20,000 warranty contracts at $99 each. The corporation spent $180,000 servicing warranties during 2025. Prepare Leppard’s journal entries for 

(a) The sale of contracts, 

(b) The cost of servicing the warranties, and 

(c) The recognition of warranty revenue. Assume the service costs are inventory costs.