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On December 31, 2012, Grando Company sells production equipment to Fargo Inc. for $50,900. Grando includes a 1-year warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2012. Grando estimates the prices to be $49,652 for the equipment and $1,248 for the warranty.
(a) Prepare the journal entry to record this transaction on December 31, 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
(b) Indicate how much (if any) revenue should be recognized on January 31, 2013, and for the year 2013. Revenue on January 31, 2013 $ Revenue for the year, 2013 $
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