Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,100 per machine. HEC usually sells these machines to hospitals at a price of $5,740. HEC also separately sells 12 months of training and repair services for fMRI machines for $2,460. HEC is paid $5,740 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service.

1. For the machine sold at its regular price, but with one year of free training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services.
2. Prepare journal entries would HEC record on November 30 and December 1? (Assume HEC uses a perpetual inventory system for recording the cost of goods sold.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

i. Record the receipt of cash

ii. Record the sales revenue for the equipment (MRI Machine)

iii. Record the cost of goods sold.