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, 37 employees qualify for one vacation day each. Their average daily wage is $290 per employee 2. During December, Maxum Company sold 4,300 units of a product that carries a 60-day warranty. December sales for this product total $132,000. The company expects 6% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15 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