a. During 2015: sold inventory to account for $500,000.

b. During 2015: The cost of goods sold in part a. is is $400,000.

c. During 2015: Estimated that uncollectible accounts on goods sold in part a will equal 2% of selling price.

d. During 2015: Estimated that warranty claims on goods sold in part a will equal 4% of selling price.

e. During 2015: Actual accounts written off as uncollectible totaled $3,000.

f. During 2015: Actual cash expenditures on warranty claims totaled $8,000.

g. Dec. 31,2015: Recognized income tax effects of preceding six transactions.

The income tax rate is 40%. The income tax law permits a deduction for uncollectible accounts when a firm writes off accounts as uncollectable and for warranty claims when a firm makes warranty expenditures. Assume that any tax is paid in cash immediately