At the end of $2025,$ the following information is available for Great Adventures.

Enter in General Journal:

Additional interest for five months needs to be accrued on the $$30,000,6\%$ note payable obtained on August $1,2024.$ Recall that annual interest is paid each July $31.$

Assume that $$10,000$ of the $$30,000$ note discussed above is due next year. Record the entry to reclassify the curfent pertien of the long$-$term note.

By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$25,000$ during the year and recorded those as Deferred Revenue.

Great Adventures is a defendant in litigation involving a biking accident during one of its adventure faces. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $$12,000.$

For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the cempany estimates future warranty costs to be $$4,000$

$-$ record entry to close revenue and expense accounts