Truck Corp. sells a truck for $25,000. The truck comes with a basic 3-year warranty and an additional
2-year extended warranty, for which the customer pays an extra $300. During 19X1, Truck pays out
$150 in repairs required under the basic warranty.
(a) Prepare the entry for the sale of the truck and the extended warranty.
(b) Prepare the entry for the $150 repair.
(c) Prepare the annual entry to recognize revenue from the sale of the extended warranty