JSM Machinery Corporation, a private company following ASPE sold manufacturing equipment for $$2,000$ each. Each machine carried $($b$)$

Prepare the journal entry to record the warranty costs incurred during $2023.($Credit account titles are automatically indented when

the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

with it a two$-$year warranty against manufacturing defects. From experience, JSM Machinery Corporation determined that each

machine sold would average $$240$ in replacement parts. In $2023,$ the company sold $1,000$ machines. Also, in $2023,$ the company

incurred $$125,000$ in total repair costs $($the cost of replacement parts from inventory$).$ JSM Machinery Corporation also sold an

extended warranty for its machines. For $$400,$ customers could purchase an extended warranty that extended the warranty on the

machine for an additional two years. $800$ of the customers that bought machines also purchased the extended warranty. Assume the

revenue is earned evenly over the two$-$year contract.

$($a$)$

Prepare the journal entry to record the sale of the machines and extended warranties for cash. $($Ignore any cost of goods sold

entry$).($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before

credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit $($c$)$

Prepare the year$-$end adjusting entry at December $31,2023,$ for the assurance$-$type warranties assuming JSM$\text{'}$s year$-$end is

December $31.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry

before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$