Problems: Show all calculations clearly for full marks. Problem 2 (8 marks) Telluride Corporation follows IFRS and is considering using either the revenue approach or the expense approach to recording its warranty performance & related expenses. Telluride wants to know the accounting & journal entries for each method. Cash sales for 2021 were 60,000 units, at a selling price of $85 per unit. The warranty they offer covers three years (2021, 2022 and 2023). Actual warranty expenditures for 2021 totaled $89,000. Required: Prepare all of the entries related to both sales and warranty for 2021, using a) The expense approach (assurance type warranty) assuming that the estimated total warranty cost over the three year period is $325,000. (4 marks) b) The revenue approach (service type warranty) assuming that 15% of the total sales proceeds is allocated to the performance of the warranty over time and assumed to be earned using the following expected pattern; 15% in 2021, 30% in 2022, 30% in 2023 and 25% in 2024. (4 marks)