On January $2,2025,$ Oriole Company sells production equipment to Blue Spruce Inc. for $$55,000.$ Oriole includes a $2-$year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January $2,2025.$ During $2025,$ Oriole incurs costs related to warranties of $$890.$ At December $31,2025,$ Oriole estimates that $$660$ of warranty costs will be incurred in the second year of the warranty.

$($a$)$

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.$)$

Date

Account Titles and Explanation

Debit

Credit