1. On December 15, 2016, MMM Company sells equipment to a longstanding customer for $125,000. MMM includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 15, 2016. Management estimates the prices to be $122,000 for the equipment and $3,000 for the cost of the assurance warranty.

On December 31, 2016 MMM Company sells equipment to a new customer, for $130,000. MMM includes a 1-yar assurance warranty service with the sale of all its equipment. In addition to the assurance warranty, MMM sold an extended warranty (service type warranty) for an additional 2 years (2018 and 2019). The customer receives and pays for the equipment on December 31, 2016. Management estimates the prices to be $122,000 for the equipment, $3,000 for the cost of the assurance warranty, and $2,000 for the extended warranty.

Using the attached T-account template, record the above transactions.

record the above transactions.

thank you.