Exam$-$Part $1-$Sahara Corporation

Selected transactions of Sahara Corporation are described below.

Required:

Using the information provided, record the following journal entries. When calculating interest, do not round intermediate

amounts, but do round the final amount to the nearest dollar. Use a $365-$day year. Sahara offers a $1-$year warranty on the

merchandise it sells.

Sahara Corporation bought seasonal merchandise inventory from Calais Distributors Inc. by signing a $$8,700,6\%,60-$day

note dated November $13,2024.$

Dec $31-ln2024,$ Sahara Corporation had sales of $$72,000.$ The cost of the merchandise sold was $$46,800.$ Record the sales

and cost of sales in two separate entries. Assume that all sales were on account.

Dec $31-In2024,$ Sahara Corporation had sales of $$72,000.$ The cost of the merchandise sold was $$46,800.$ Record the sales

and cost of sales in two separate entries. Assume that all sales were on account.

Dec $31-$Recorded the adjusting entry to recognize the estimated warranty expense associated with the $2024$ sales. Sahara

simply replaces defective items returned by customers with new items from inventory. Estimated that warranty expense

will be $8\%$ of sales.

Dec $31-$Recorded the adjusting entry for accrued interest on the note.

Jan $7-$Replaced an item under warranty for a customer. The cost of the replacment was $$41.$

Jan $12-$ Paid the maturity value of the note due Calais Distributors Inc..

Journal

Note: Start each entry on a starred row.

Note: Use the gray$-$shaded cell for each entry to select the transaction description.