Situation:Baxter Incorporated manufactures and sells Heating and Air Conditioni

Situation:Baxter Incorporated manufactures and sells Heating and Air Conditioning Units for large industrial buildings and uses. Baxter
offers their customers a one year warranty on all products sold. Customers can also purchase a five year warranty on their heating and air conditioning unit
that were purchased. SUNY Oswego was doing renovations to their campus and had the need for two large heating and air conditioning units. On January 2 2007
SUNY Oswego contracted with Baxter Incorporated to purchase these units at a cost of $240000. SUNY Oswego was aware of the one year warranty but also decided
to purchase the additional five year warranty. Baxter Incorporated received $75000 from SUNY Oswego for the warranties on the two heating and air conditioning
units.
Determine the journal entries to record the purchase one year warranty and five year warranty. In addition determine journal entries for any
aspect of the transaction that should be recorded for that year (assume the sale was made by credit).