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Crane Hardware takes pride as the "shop around the corner" that can compete with the big$-$box home improvement stores by providing good service from knowledgeable sales associates $($many of whom are retired local handymen$).$ Crane has developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line.

Crane sells a specialty portable winch that is popular with many of the local customers for use at their lake homes $($putting docks in and out, launching boats, etc.$).$ The Crane winch is a standard manufacture winch that Crane modifies so the winch can be used for a variety of tasks. Crane sold $80$ of these winches during $2025$ at a total price of $$25,600,$ with a warranty guarantee that the product was free of any defects. The cost of winches sold is $$16,800.$ The assurance warranties extend for a $3-$year period with an estimated cost of $$2,400.$ In addition, Crane sold extended warranties related to $20$ Crane winches for $2$ years beyond the $3-$year period for $$430$ each.

To bolster its already strong customer base, Crane implemented a customer loyalty program that rewards a customer with $1$ loyalty point for every $$10$ of purchases on a select group of Crane products. Each point is redeemable for a $$1$ discount on any purchases of Crane merchandise in the following $2$ years. During $2025,$ customers purchased select group products for $$105,000($all products are sold to provide a $45\%$ gross profit$)$ and earned $10,500$ points redeemable for future purchases. The standalone selling price of the purchased products is $$105,000.$ Based on prior experience with incentives programs like this, Crane expects $9,900$ points to be redeemed related to these sales $($Crane appropriately uses this experience to estimate the value of future consideration related to bonus points$).$

$($b$)$

Prepare the journal entries for Crane related to the sales of Crane winches with warranties. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts. Do not round intermediate calculations. Round final answers to $0$ decimal places, e$.$g$.5,125.$ List all debit entries before credit entries.$)$

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