Question: Saints Computer Company sells computers for $2,000 each, which includes a 3-year warranty that requires the company to perform periodic services and to replace defective

Saints Computer Company sells computers for $2,000 each, which includes a 3-year warranty that requires the company to perform periodic services and to replace defective parts. During 2023, Saints sold 500 computers on account. Based on past experience, the company has estimated the total 3-year warranty costs at $180 per computer. (Assume sales all occur at December 31, 2023.) In 2024, Saints Computer Company incurred actual warranty costs relative to 2023 computer sales of $22,000. Instructions a) Using the assurance type warranty approach, prepare all necessary entries to reflect the above transactions for 2023 and 2024. (5 marks) b) Using the cash basis method, what are the Warranty Expense balances for 2023 and 2024? (2 marks) c) Referring to the transactions of part a), with proper title, format and classifications, show the partial statement of financial position showing the balances of the warranty liabilities as at the year-end of 2023

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