題組內容

4. On December 31, 2018, DDD Company sells equipment to TTT In(C)for $125,000. DDD includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2018. DDD estimates the prices to be $122,000 for the equipment and $3,000 for the cost of the warranty. Instructions

(a) Prepare the journal entry to record this transaction (sales and warranty arrangement) on December 31, 2018.