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Question - On December 31, 2017 dieker company sells equipment to tabor inc for 125,000. Cost of goods sold is 90,000. Dieker includes a 1 yr assurance warranty service with the sale of its equipment. The customer receives and pays for the equipment on dec 31, 2017. Dieker estimates the prices to be 122,000 for the equipment and 3,000 for the warranty.
1. What are the journal entries for dec 31, 2017?
2. Repeat requirements for number 1 assuming that in addition to assurance warranty, dieker sold and extended warranty(service type warranty) for an additional two years 2019-2020 for 2,000.
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