Concord Inc. manufactures and sells computers that include an assurance-type warranty for the first 90 days. Concord offers an optional extended coverage plan under which it will repair or replace any defective part for 3 years from the expiration of the assurance-type warranty. Because the optional extended coverage plan is sold separately, Concord determines that the 3 years of extended coverage represents a separate performance obligation. The total transaction price for the sale of a computer and the extended warranty is $3,540 on October 1, 2017, and Concord determines the standalone selling price of each is $3,100 and $440, respectively. Further, Concord estimates, based on historical experience, it will incur $200 in costs to repair defects that arise within the 90-day coverage period for the assurance-type warranty. The cost of the equipment is $1,490. Assume that the $200 in costs to repair defects in the computers occurred on October 25, 2017.

(a) Prepare the journal entry(ies) to record the October transactions related to sale of the computers.