Early in 2017, Carla Equipment Company sold 500 Rollomatics during 2017 at $5,500 each. During 2017, Carla spent $18,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

Prepare 2017 entries for Carla assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $51,000 relates to sales of warranty contracts. Carla estimates the total cost of servicing the warranties will be $50,000 for 2 years. Estimate revenues to be recognized on a straight-line basis.

Prepare 2017 entries for Carla. Assume that Carla estimates the total cost of servicing the warranties will be $50,000 for 2 years amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Date Debit Credit Account Titles and Explanation To record warranty revenue)