3. Sail Sea Inc. sells deep sea fishing poles for (see below) each. Each pole has a 3-year warranty. Sail Sea estimates that the average warranty cost is (see below) per pole. During May 2018, Sail Sea sells (see below) poles on account. Assuming that the company uses the periodic inventory method, prepare the journal entries associated with the sale and the warranty. For 10 percent (10%) of the poles sold below, Sail Sea also sells extended warranties for $12 each for 3 years of coverage.

Assigned:

Last Name Price Ave. Warranty Cost # Poles Sold

A D $250 $8 2000

E H $225 $10 4000

I M $245 $11 2100

N S $305 $15 2440

T Z $215 $14 2500

1. Record the sales and associated warranty transactions for the month of May.