Question S Chevla is a manufacturer of hot tubs . Chevla's hot tubs are sold with a typical " assurance -type " warranty of six months . At the time of a sale , the purchaser has the option to buy the hot tub with a 5- year extended warranty . The 5- years would begin after the end of the six- month assurance- type warranty . If the purchaser chooses not to buy the 5-year extended warranty at the time of the purchase , the purchaser can still buy the 5- year extended warranty up to six months later . The following information is available* regarding the manufacturer's " Nova " model of hot tub : ( a ) The normal selling price of a Nova , without the 5-year extended warranty , is $14 , 000 . The cost of goods sold is $9 , 000 . ( 6) When a Nova is purchased as a package with the 5- year extended warranty , the selling price for the package is $15 , 000 . This special offer is only available at the time of the initial purchase . ( C) If the 5- year optional extended warranty were to be purchased by itself ( separate from the hot tub ) , the price would be $1 , 500 . ( d) Chevla estimates that it's hot tubs will have assurance -type warranty claims of 3% of sales revenue . REQUIRED 1 . If Chevla sold a Nova , for cash , without a 5-year extended warranty , prepare all of the applicable journal entries at the date of delivery associated with the sale . 2 . If Chevla sold a Nova , for cash , with the 5- year extended warranty as a package , prepare all of the applicable journal entries at the date of the delivery associated with the sale