Collins Restaurant Supplies sells, among other things, a point-of-sale system tailored to restaurants. The system costs $2,000 per unit and includes a 5-year warranty requiring Collins to service and fix they system. Collins sold 5,000 systems during December 20X1. Based on past experience, Collins estimates the total cost of servicing and fixing the systems over the 5-year warranty period to be $20 for parts and $80 for labor per unit. In 20X2, Collins provided $18,000 in parts and $60,000 in labor related to servicing warranties related to these December 20X1 sales. Required: (a) Provide the journal entry(ies) and adjusting journal entry(ies) for December 20X1 related to these transactions (b) Provide the journal entry(ies) and adjusting journal entry(ies) made in 20X2 related to these transactions.
