BE13-14 Your answer is correct. Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2012, Leppard sold 20,000 warranty contracts at $99 each. The corporation spent $180,000 servicing warranties during 2012, and it estimates that an additional $900,000 will be spent in the future to service the warranties. Unearned revenues are to be allocated on the basis of costs incurred to date in relation to total expected costs. 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. (Note: Do not round the computations for this calculation). a c escri tion/Account Cash Unearned warranty evenue arran ex ense Cash, Invento , etc. nearned warran revenue Warranty revenue Debi 19800001 180000 330000 Credi 1980000 180000 330000