Exercise 11-12 Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company. 1. Employees earn vacation pay at a rate of one day per month. During December 33 employees qualily for one vacation day each Their average daily wage is $140 per employee. 2. Du December, Maxum Company sold 4,700 units of a product that carries a 60-day warranty. December sales for this product total $130,000. The company expects 7% of the units to need warranty be $19. repairs, and it estimates the average repair cost per unit will Prepare any necessary adjusting entries at December 31, 2017, for Maxum Company's year-end financial statements for each of the above separate transactions and events. View transaction list Journal entry worksheet Employees earn vacation pay at a rate of one day per month. During December, 33 employees qualify for one vacation day each. Their average daily wage is $140 per employee. Record the related adjusting entry. Note: Enter debits before credits General Debit