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Question - XYZ Company sells windsurfing boards for $2,000 each. At time of sale, XYZ gives each customer a 4-year warranty that requires the company to perform periodic services and to replace defective boards. During 2018, the company sold 1,500 boards. Based on past experience, the company has estimated the total 4-year warranty costs as $55 for Supplies and $72 for Labour per board sold. Assume sales all occurred at December 31, 2018. In 2019, XYZ incurred actual warranty costs relative to 2018 windsurfing board sales of $19,000 for Supplies and $28,000 for Labour. Provide the entries to reflect the above transactions (accrual method) for XYZ in 2018 and 2019.
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