Question 8 On December 31, 2017, Pharoah Company sells production equipment to Fargo AG for $42,000. Pharoah includes and pays for the equipment on December 31, 2017. Pharoah estimates the prices to be $40,992 for the equipment and $1,008 for the warranty. 1-year warranty service with the sale of all its equipment. The customer receives (a) Your answer is correct. Prepare the journal entry to record this transaction on December 31, 2017. (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 Credit Date Debit Dec. 31, 2017 Cash 42000 Unearned Warranty Revenue 1008 Sales Revenue 40992 (To record the initial transaction) SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used (b) XYour answer is incorrect. Try again. Indicate how much (if any) revenue should be recognized on January 31, 2018, and for the year 2018. (If no revenue should be recognized, please enter 0.) Revenue on January 31, 2018 Revenue for the year 2018