Comp Limited sold 2,000 notebooks for cash during December 2019 at a total price of $12,000,000, with a warranty guarantee that the product was free of any defects. The cost of notebooks sold is $8,000,000. The term of the assurance warranty is 1 year, with an estimated cost of $60,000. In addition, Comp Limited sold extended warranties related to 800 notebooks for 3 years beyond the 1-year period for cash $24,000.

Because the extended warranty is sold separately, Comp Limited determines that the 3 years of extended warranty represent a separate performance obligation.

Required:

Prepare the journal entries to record the sale of the notebooks, cost of goods sold, expense and liabilities related to the transactions for the month December 2019.