ABC Stores offers customers purchasing its appliances separately priced (extended) warranties. ABC services these extended warranties. Its customers can receive no refunds for not using these warranties, and, of course, ABC must honor these contracts—regardless of any future costs in doing so. It also “tracks” the profits and losses these types of warranties generate by appliance category—in order to help maintain a competitive price and costing structures. How should ABC recognize the revenues and expenses of such extended warranties?