Cullumber Inc. manufactures and sells computers that include an assurance$-$type warranty for the first $90$ days. Cullumber offers an optional extended coverage plan under which it will repair or replace any defective part for $3$ years from the expiration of the assurance$-$type warranty. Because the optional extended coverage plan is sold separately, Cullumber determines that the $3$ years of extended coverage represents a separate performance obligation. The total transaction price for the sale of a computer and the extended warranty is $$3,300$ on October $1,2025,$ and Cullumber determines the standalone selling price of each is $$2,880$ and $$420,$ respectively. Further, Cullumber estimates, based on historical experience, it will incur $$350$ in costs to repair defects that arise within the $90-$day coverage period for the assurance$-$type warranty. The cost of the equipment is $$1,500.$ Assume that the $$350$ in costs to repair defects in the computers occurred on October $25,2025.$

$($a$)$ Prepare the journal entries to record the October transactions related to sale of the computers. $($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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record sales$)$