Early in $2022,$ Sheryl Lee Equipment sold $590$ Rollomatics at $7,080$ each During $2022,$ Lee spent $23,600$ from Cash,Supplies, Wages Payable servicing the $2-$year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

$($a$)$

$($b$)$

Prepare $2022$ entries for Lee assuming that the warrantles are not an integral part of the sale $($a service$-$type warranty$).$ Assume that of the sales total, $665,900$ relates to sales of warranty contracts. Lee estimates the total cost of servicing the warranties will be $64\mathrm{.}900$ for $2$ years. Estimate revenues to be recognized on a straight$-$line basis. Iff no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are qutomatically indented when amount is entered. Do not indent manually. Round intermediate calculations to $5$ decimal places, es$,1\mathrm{.}54657$ answers to $0$ decimal places, eg$.5,125.$ Record journol entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credil