2 questions

An entity offers a 2 year warranty program on all the products is sells. They estimate that warranty costs will equal 3% of sales in the first year of the warranty and 2% of sales in the second year of the warranty. In the first year, total sales amounted to $3945242. Warranty costs incurred to service products under Warranty was $34247 What is the warranty expense for the first year Select one: a. $163015 b. $118357 c. $197262 d. $34247 Check On July 31, 20x1, the McGyver Company borrowed $799432 from one of its customers and issued a note payable for the amount. The interest, payable annually is 9%. The balance of the note is payable on July 31, 20x21. The company's year-end is December 31, What is the cash outflow on the notes payable at July 31, 20x2? Select one: a. $0 Ebb. $ 29979 c. $ 41970 d. $ 71949 Check