Hospital Equipment Company (HEC) acquired several MRI machines for its inventory at a cost of $2,300 per machine. HEC usually sells these machines to hospitals at a price of $5,800. HEC also separately sells twelve months of training and repair services for MRI machines for $1,450. HEC is paid $5,800 cash on January 1 for the sale of an MRI machine delivered on January 1. HEC sold the machine at its regular price, but included one free year of training and repair service. 

Required: 

1. For the machine sold at its regular price, but with one free year of training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services. 

2. What journal entry would HEC record for the transaction on January 1? (Assume HEC uses a perpetual inventory system for recording the cost of goods sold.)