Accounting for Selected Transactions

Robert Inc. is a retail company selling technology products online. Robert's fiscal year end is December 31. Below is selected information about Robert's operations during 2021.

1. During March, Robert sold 200 units of one of its technology products at $200 each, subject to provincial sales tax of 8% of the sales price, and goods and services tax of 5% of the sales price. Customers paid for their purchases using either MasterCard or Visa, that both charge Robert Inc. a fee of 2% for their service.

Each unit carries a one-year warranty. Robert promises to repair the unit should it become defective. The estimated cost to the company to honour the warranty is $30 per unit and experience has shown that approximately 7% of all units may have to be repaired during the warranty period.

Required: Prepare journal entries to record (1) sales during the first quarter of 2021 and (2) the associated warranty kpense.