14.6. a. Dill Computer warranties their $3,000 laptops for 2 years. Typical repair costs for units returned (labor and parts): $100/unit. Usually, only 3% of units sold need repair in the first year after sale, and 4% in year 2. Dill also sells an extended warranty, offering 3 years of additional protection, for $75; usually, only 15% of units sold in a given year need repairs within the 3-year period that begins 2 years after the sale. In year 2kC Dill Computer sells 1 200 laptops. They also sell 500 extended warranties. a. Provide the entries to accrue warranty expense for the usual 2-year period and b. defer revenue using the "sales" method for the extended warranties. c. Is Dill "making money" on their extended warranty sales? If so, how much? (check figures: b. deferred warranty revenue $37,500.)