FutureGeeks Ltd. sells computers, computer accessories, and software. On its computer sales, the company provides a six-month warranty that is included in the cost of the computer. Claims under the warranties vary from replacing defective parts to providing customers with new computers if repairs cannot be made. During 2020, the estimated cost related to the warranties was $ 101,250, of which $65,000 had been incurred before year end. They company used inventory to settle these claims. For an additional charge of $375, FutureGeeks Ltd also offers extended warranty coverage for two years on its computers. This amount is expected to cover the costs associated with the extended warranties. During 2020, FutureGeeks Ltd sold 1,625 two-year warranties. The costs incurred during the year for replacements under these warranties amounted to $46,000 (settled using inventory). Based on past experience, the company estimates that its total warranty costs over the two-year coverage period will be $125,000. 1. Prepare the journal entries to record the assurance warranty transactions in 2020 (4 marks) 2. Prepare the journal entries to record the service type warranty in 2020 (6 marks) 3. Explain why warranty expense and the actual cost incurred for a warranty often do not occur in the same period (2 marks) Note - include any calculations in your response