Part 1. Saxon Company sells a single product subject to a one-year warranty that covers replacement parts but not labor. The company uses a periodic inventory system to account for merchandise. Prepare journal entries to record the following transactions completed by the company during the month of September.

Sept. 1 Purchased 4,500 units of merchandise for \(\$ 85\) per unit, paying cash.

2 Purchased \(\$ 45,600\) of spare parts for making repairs to merchandise that is expected to be returned for warranty work.

5 Sold 2,500 units of merchandise for \(\$ 200\) per unit, receiving cash.

10 Repaired 90 units of merchandise that customers returned under the warranty. Replacement parts cost \(\$ 5,670\) and the customers paid \(\$ 5,940\) for labor.

17 Sold 2,000 units of merchandise for \(\$ 250\) per unit.

22 Repaired 55 units of merchandise under the product warranty. Replacement parts cost \(\$ 3,355\) and the customers paid \(\$ 3,520\) for labor.

30 Recorded warranty expense for September. Past experience shows that \(4 \%\) of the units sold require warranty work and the average cost of replacement parts is \(\$ 62\) per unit returned. Average labor charges are \(\$ 65\).

Part 2. Tidwell Company accrues property taxes at the end of each month and uses recent experience as a means of estimating the tax. In early 1989, Tidwell's property was appraised at \(\$ 700,000\). The 1989 tax levy was \(\$ 1.30\) per \(\$ 100\). In January 1990, Tidwell's property was reappraised at \(\$ 780,000\). (The reappraisal was not expected to affect the tax levy of \(\$ 1.30\) per \$100.) Early in July 1990, the annual tax levy was set at \(\$ 1.50\) per \(\$ 100\). On October 31, 1990, Tidwell paid the 1990 tax. Complete financial statements are prepared by the company on a monthly basis and the company does not use reversing entries.

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Prepare entries at the end of January, July, October, and November, 1990, to record property tax expense for each of those months and to record the annual tax payment.