Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $5,510 of accrued vacation benefits for the year.

During December, Maxum Company sold 3,600 units of a product that carries a 60-day warranty. December sales for this product total $124,000. The company expects 9% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $12. Prepare adjusting entries at December 31 for Maxum Companys year-end financial statements for each of the above separate transactions.