1. During 2017, Beever Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: See notebook: What amount should Beever report as a liability at December 31, 2017? Correct answer is $16,000. I would like to know how to calculate.

Year // Sales /// Actual Warranty Expense

2017 200,000 6,000

2018 1,600,000 23,000

2019 2,100,000 110,000

Total Sales: 3,900,000

Total Actual warranty expense: 139,000

2. Bees Knees Corp. signed a three-month, zero interest-bearing $ 263 000 note on November 1, 2019 for the purchase of $250,000 of inventory. If Bees Knees makes adjusting entries only at the end of the year, the adjusting entry made at December 31, 2019 will include a ________. Debit to interest expense $8667

3. Bees Knees Corp. signed a three-month, 10% note on November 1, 2019 for the purchase of $258,000 of inventory. If Bees Knees makes adjusting entries only at the end of the year, the adjusting entry made at December 31, 2019 will include a ________. (Do not round any intermediary calculations. Round your final answer to the nearest dollar.) debit to interest expense for $4309.

** Correct answers are provided on each questions. I just want to know to calculate. Thank you!