14. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $9,900. What is the amount of total unemployment taxes the employer must pay on this. employee's wages? A) $336.00 B) $420.00 C) $534.60 D) $594.00 E) $0.00 15. Employees eam vacation pay at a rate of one day per month. The company estimated and must expense $1,500 of accrued vacation benefits for the year. Which of the following is the necessary year-end adjusting entry to record accrued vacation benefits? A) Debit Vacation Benefits Expense \$1,500; credit Prepaid Vacation $1,500 B) Debit Vacation Benefits Expense \$1,500; credit Vacation Benefits Payable $1,500 C) Debit Payroll Tax Expense \$1,500, credit Payroll Taxes Payable \$1,500 D) Debit Prepaid Vacation Benefits $1.500; credit Vacation Benefits Payable $1,500 E) Debit Prepaid Benefits Payable $1,500; credit Vacation Benefits Expense $1,500 16. Sales taxes payable is reported as a(n): A) Estimated liability B) Contingent liability C) Current liability D) Business expense E) Long-term asset 17. A short-term note payable: A) Is a written promise to pay a specified amount on a stated future date within one year or the company's operating cycle, whichever is longer B) Is a contingent liability C) Is an estimated liability D) Is not a liability until the due date. E) Cannot be used to extend the payment period for an account payabie 18. During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is: A) Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800 B) Debit Warranty Expense $9,400; credit Estimated Warranty Llability $9,400 C) Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400 D) Debit Estimated Warranty Liability $9,400; credit Parts inventory $9,400 E) Debit Estimated Warranty Liability $17,800; credit Parts Inventory $17,800