Use the information given below to answer Questions $36-38.$ Mickey Mouse Industries, Inc., $[$MMI$]$ manufactures and sells electronic solid fuel powered vehicles popularly known as RatKars $[$RK$].$ The company offers a comprehensive two$-$year warranty contract with a commitment to replace all defective parts and provide the necessary labor services. During $2018$ the corporation sold $6,000$ RK for cash at a unit price of $$4,000.$ Based on past experience, the two$-$year warranty contracts are estimated to cost the company $$380$ per unit which included $$80$ per unit on parts and the balance for labor. These are recorded at the time when the sales are recorded. During $2018,$ MMI incurred actual costs of $$990,000($which consisted of $$444,000$ for parts and the rest for labor$)$ on repair work called for by customers on the sold units NEXT You are then further informed that MMI estimates $$500$ per unit of the product revenues from the above mentioned sales would would be considered as warranty revenues. $40\%$ of these warranty revenues relate to year $2018$ and the balance to year $2019.$ Now apply the revenue$-$based $($service$-$type$)$ approach for answering Questions $36-39.$

$38]$ The journal entry to record the actual warranty costs incurred in $2018$ would be

a$.$ Warranty Expense $q,$ DR $$990,000$

Cash $q,$ CR $$546,000$; Parts Inventory $q,$ CR $$444,000.$

b$.$ Warranty Expense $q,$ DR $$990,000$; Warranty Payable $q,$ CR $$990,000.$

c$.$ Warranty Expense $q,$ DR $$990,000$; Estimated Liability for Warranties $q,$ CR $$990,000.$

d$.$ Warranty Revenues $q,$ DR $$990,000$; Cash $q,$ CR $$546,000$; Parts Inventory $q,$ CR $$444,000.$

e$.$ Warranty Expense $q,$ DR $$990,000$

Direct Labor $q,$ CR $$546,000$; Parts Inventory $q,$ CR $$444,000.$