c, d.

Crane Hardware takes pride as the "shop around the corner" that can compete with the big-box home improvement stores by providing good service from knowledgeable sales associates (many of whom are retired local handymen). Crane has developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line. 1. Crane sells a specialty portable winch that is popular with many of the local customers for use at their lake homes (putting docks in and out, launching boats, etc.). The Crane winch is a standard manufacture winch that Crane modifies so the winch can be used for a variety of tasks. Crane sold 60 of these winches during 2025 at a total price of $16,800, with a warranty guarantee that the product was free of any defects. The cost of winches sold is $15,700. The assurance warranties extend for a 3-year period with an estimated cost of $1,800. In addition, Crane sold extended warranties related to 20 Crane winches for 2 years beyond the 3 -year period for $360 each. 2. To bolster its already strong customer base, Crane implemented a customer loyalty program that rewards a customer with 1 loyalty point for every $10 of purchases on a select group of Crane products. Each point is redeemable for a $1 discount on any purchases of Crane merchandise in the following 2 years. During 2025, customers purchased select group products for $101,000 (all products are sold to provide a 45% gross profit) and earned 10,100 points redeemable for future purchases. The standalone selling price of the purchased products is $101,000. Based on prior experience with incentives programs like this, Crane expects 9.600 points to be redeemed related to these sales (Crane appropriately uses this experience to estimate the value of future consideration related to bonus points). (b) Prepare the journal entries for Crane related to the sales of Crane winches with warranties. (Credit account tities are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter ofor Prepare the journal entries for Crane related to the sales of Crane winches with warranties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal ploces, e.g. 5,125. List all debit entries before credit entries.)