View Policies Current Attempt in Progress On January 2, 2020, Metlock Company sells production equipment to Fargo Inc. for $48,000. Metlock 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, 2020. During 2020, Metlock incurs costs related to warranties of $920. At December 31, 2020, Metlock estimates that $620 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, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31, 2020). (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 O for the amounts.) Date Account Titles and Explanation Debit Credit

Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financial statements are prepared on December 31,2020). (Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the occount titles and enter 0 for the amounts) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Metlock sold an extended warranty (service type warranty) for an additional 2 vears (20222023) for $900. (Credit occount titles are automatically indented when the amount ki enternd. Do not indent maniaglix. If no entry is required, select "No entry" for the account tities and enter ofor the amounts) On January 2. 2020, Metlock Company selis production equipment to Fargo Inc. for $48,000. Metlock 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 2020. During 2020 , Metiock incurs costs related to warranties of $920. At December 31,2020 , Metlock estimates that $620 of warranty costs will be incurred in the second year of the warranty. (a) Prepare the journal entry to record this transaction on January 2.2020. and on December 31, 2020 lassuming financial statements are prepared on December 31,2020). (Credit account titles are automotically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry' for the occount titles and enter O for the amounts.)