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Cullumber Inc. manufactures and sells computers that include an assurance$-$type warranty for $90$ days. Cullumber offers an optional

extended coverage plan under which it will repair or replace any defective part for three years from the expiration of the assurance$-$

type warranty. Because the optional extended coverage plan is sold separately, Cullumber determines that the three years of the

extended coverage represent a separate performance obligation. The total transaction price for the sale of a computer and the

extended warranty is $$3,880$ on October $1,2023.$ Cullumber determines that the stand$-$alone selling price of each is $$3,240$ and $$640,$

respectively. Further, Cullumber estimates, based on historical experience, that it will incur $$150$ in costs to repair defects that arise

within the $90-$day coverage period for the assurance$-$type warranty. The cost of the equipment is $$1,240.$

$($b$)$

Prepare the journal entry $($or entries$)$ to record the cash sale of the computer, cost of goods sold, and liabilities related to the

warranties. $($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. List all debit entries before credit entries.$)$

Date

October $1,2023$

October $1,2023$

$($To record the cash sale of the computer$)$

October $1,2023$

Debit

Credit

Account Titles and Explanation