Early in $2025,$ Riverbed Equipment sold $500$ Rollomatics at $$6,000$ each. During $2025,$ Riverbed spent $$21,000$ servicing the $2-$year assurance warranties with inventory, cash, and payables that accompany the Rollomatic. All sales transactions are on a cash basis.

$($a$)$

Your answer is partially correct.

Prepare $2025$ entries for Riverbed. Assume that Riverbed estimates the total cost of servicing the warranties in the second year will be $$39,000.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Cash.

$($To record sales$)$