On December 31, 2025, Pharoah Company sells production equipment to Steering Inc. for $69,000. Pharoah 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, Pharoah estimates that $1,860 of warranty costs will be incurred in the second year of the warranty. (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Warranty Expense Debit 1860 Credit Cash Sales Revenue Warranty Liability 69000 69000 1860 (b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Pharoah sold an extended warranty (service-type warranty) for an additional 2 years (2027-2028) for $1,200. (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 O for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media