CCC Company sells their air-conditioning units to various customers. In its contract with

Makati Hotel, Carrier Philippines promised to deliver 25 split-type air-conditioning units

for a total price of P800,000 by the end of 2020. The contract with Makati Hotel contains

a provision for free repairs and maintenance services within 2 years from the date of

purchase. All the 25 units were delivered and Makati Hotel paid P800,000.

Determine the following:

a. Revenue to be recognized on 2020

b. Entries to record the transaction