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On December 3 1 , 2 0 2 5 , Cullumber Company sells production equipment to ToyCo Inc. for $ 8 1 , 0 0

On December 31,2025, Cullumber Company sells production equipment to ToyCo Inc. for $81,000. Cullumber includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31,2025. At December 31,2025, Cullumber estimates that $1,720 of warranty costs will be incurred in the second year of the warranty.
(a)
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Prepare the journal entry to record this transaction on December 31,2025.(List all debit entries before credit entries. 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.)
Account Titles and Explanation
Debit
Credit
Repeat the requirements for (a), assuming that in addition to the assurance warranty, Cullumber sold an extended warranty (service-type warranty) for an additional 2 years (2027-2028) for $1,170.(List all debit entries before credit entries. 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.)
Account Titles and Explanation
Debit
Credit
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