Ivanhoe Ltd$.$ sells computers, computer accessories, and software. On its computer sales, the company provides a one$-$month warranty

that is included in the cost of the computer. Claims under the warranties vary from replacing defective items to providing customers

with refunds if they choose. During $2024,$ the estimated costs related to the one$-$month warranties was $$34,400,$ of which $$30,960$

had been incurred before year end $($ $$25,800$ for replacement items and $$5,160$ in refunds$).$

For an additional charge of $$86,$ Computers Galore 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 $2024,$ Computers Galore sold $688$ two$-$year

warranties. The costs incurred during the year for replacements under these warranties amounted to $$26,660.$ Based on experience,

the company estimates that its total warranty costs over the two$-$year coverage period will be $$51,600,$ which it expects will occur

evenly over the warranty period.

$($a$1)$

Prepare journal entries to record the warranty transactions for $2024.($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. List all debit entries

before credit entries.$)$

Account and explanation

Debit

Credit

$($To record estimated cost related to $1$ month warranties$)$

$($To record cost incurred related to $1$ month warranties$)$

$($To record sale of $2$ year extended warranties$)$

$($To record cost incurred related to $2$ year extended warranties$)$

$($To record warranty revenue$)$