A company's merchandising division began to sell training contracts with the sale of equipment in one bundle price whereby the customer pays a monthly fee for 36 months. The monthly fee is due at the beginning of each month. During that time, the company provides any training on the equipment as required by the customer. It is expected that training costs incurred will be incurred evenly over time. Any training costs incurred to date have been charged to the Purchases of Merchandise account. Assume that the effects of discounting are not material (i.e. you do not have to discount the cash flows). The company sold 3 of these contracts during 20x5 as follows: Contract 1 Contract 2 Contract 3 Date of contract Mar 1, 20x5 June 1, 20x5 Sep 1, 20x5 $90,000 $125,000 $240,000 Stand-alone selling price of equipment Stand-alone selling price of training service contract Monthly fee charged to the customer $15,000 $3,800 $25,000 $7,000 $10,000 $2,600 The bookkeeper recorded the monthly revenues in the revenue account. Required Prepare the adjusting journal entry required at December 31, 20x5