On December $31,2025,$ Cullumber Company sells production equipment to ToyCo Inc. for $$81,000.$ Cullumber includes a $1-$year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December $31,2025.$ At December $31,2025,$ Cullumber estimates that $$1,720$ of war ranty costs will be incurred in the second year of the warranty.

$($a$)$

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 $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Cash

$82,170$

Warranty Expense

$1,720$

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List of Accounts

Attempts: $0$ of $3$ used