Make the journal entry to record the transaction on december

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On December 31, 2020, Wildhorse Company sells production equipment to Fargo AG for $47,000. Wildhorse includes a 1-year warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2020. Wildhorse estimates the prices to be $45,872 for the equipment and $1,128 for the warranty.

Question 1. Prepare the journal entry to record this transaction on December 31, 2020

Question 2. Indicate how much (if any) revenue should be recognized on January 31, 2021, and for the year 2021. (If no revenue should be recognized, please enter 0.)

a) Revenue on January 31, 2021$
b) Revenue for the year 2021$

Reference no: EM132658852

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