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Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,200 per machine. HEC usually sells these machines to hospitals at a price of $6,640. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,660. HEC is paid $6,640 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repain service.

A. For the machine sold at its regular price, but with one year of "free" training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services.

Equipment:

Service:

B. Prepare journal entries would HEC record on November 30 and December 1? (Assume HEC uses a perpetual inventory system for recording the cost of goods sold.) (If no entry is required for a transaction/event, select "No Jounral Entry Required" in the first account field.)

1. Record the receipt of cash.

2. Record the sales revenues for the training and repair service.

3. Record the cost of goods sold.