Exercise 18-26 On January 2, 2017, Coronado Company sells production equipment to Fargo Inc. for $55,000. Coronado includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays eine 18.530 1 for the equipment on January 2, 2017. During 2017, Coronado incurs costs related to warranties of $940 (Use Parts Expense account). At December 31, 2017, Coronado estimates that $640 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on January 2, 2017 and on December 31, 2017 (assuming financial statements are prepared on December 31, 2017). (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.) Review Reults by Stuey Repeat the requirements for (a), assuming that in addition to the assurance warranty, Coronado sold an extended warranty (service-type warranty) for an additional 2 years (2019-2020) for $820. (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 0 for the amounts.)