On December 31, 2020, Sunland Company sells equipment to Tabor Inc. for $125,000. Sunland 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, 2020. Sunland estimates the prices to be $121,000 for the equipment and $4,000 for the cost of the warranty.

Prepare the journal entry to record this transaction on December 31, 2020. (Credit account titles are automatically indented when 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, Sunland sold an extended warranty (service type warranty) for an additional 2 years (20222023) for $1,500. (Credit account titles are automatically indented when 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