Corporation sells computers under a 2 year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2010 the corporation sells for cash 400 computers at a unit price of $2,500. On the basis of past experience, the 2 year warranty costs are estimated to be $155 for parts and $185 for labor per unit. (for simplicity assume that all sales occured on december 31, 200). The warranty is not sold separately from the computer
1. record any necessary journal entries in 2010, applying the cash-basis method.