On January $2,2025,$ Cullumber Company sells production equipment to Ivanhoe Inc. for $\backslash$$$54,000.$ Cullumber includes a $2-$year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January $2,2025.$ During $2025,$ Cullumber incurs costs related to warranties of $\backslash$$$860.$ At December $31,2025,$ Cullumber estimates that $\backslash$$$650$ of warranty costs will be incurred in the second year of the warranty.

$($a$)$

Your answer is partially correct.

Prepare the journal entry to record this transaction on January $2,2025,$ and on December $31,2025($assuming financial statements are prepared on December $31,2025).($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. Record journal entries in the order presented in the problem.$)($b$)$

Repeat the requirements for $($a$),$ assuming that in addition to the assurance warranty, Cullumber sold Ivanhoe an extended warranty $($service$-$type warranty$)$ for an additional $2$ years $(2027-2028)$ for $\backslash (\backslash$$ $780\backslash ).($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. Record journal entries in the order presented in the problem.$)$