On December $31,2020,$ Swifty Company sells equipment to Tabor Inc. for $$119,400.$ Swifty includes a $1-$year assurance warranty service with the

sale of all its equipment. The customer receives and pays for the equipment on December $31,2020.$ Swifty estimates the prices to be $$115,000$ for

the equipment and $$4,400$ 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

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Repeat the requirements for $($a$),$ assuming that in addition to the assurance warranty, Swifty sold an extended warranty $($service type

warranty$)$ for an additional $2$ years $(2022-2023)$ for $$1,300.($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