DH Company sells a machine for $60,000 on January 3, 2016. DH gives assurance-type warranty for 1 year and estimates the costs related to the warranty to be $500. In addition, the customer also purchases a service type warranty at $12,000 for an additional 2 years. In 2016, the customer incurs warranty costs related to the assurance-type warranty of $300.

Please prepare the journal entries for the following events:

1. Date of sale, January 3, 2016.
2. Warranty costs incurred in 2016
3. Service type warranty in 2017..

Please copy and use these tables for your journal entries:

Account	Debit	Credit

Account	Debit	Credit