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?

Please show me step by step what I need to do for this problem. I know a. is Warranty Expense 8400 debit and warranty payable 8400 credit