Exercise 18-26 On January 2, 2017, Larkspur Company sells production equipment to Fargo Inc. for $54,000. Larkspur includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2017. During 2017, Larkspur incurs costs related to warranties of $930. At December 31, 2017, Larkspur estimates that $650 of warranty costs will be incurred in the second year of the warranty. Z Your answer is partially correct. Try again 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 0 for the amounts.) Debit Credit Aocount Titles and Explanation Date Jan. 2, 2017 a Cash T 54,000 T T 54,000 Sales Revenue Dec. 31, 2017 IT Warranty Expense 1580 T 1580