Exercise $9-8$A $($Algo$)$ Current liabilities LO $9-1,9-2,9-4$

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The following transactions apply to Ozark Sales for Year $1$:

The business was started when the company received $$49,500$ from the issue of common stock.

Purchased merchandise inventory of $$176,500$ on account.

Sold merchandise for $$204,500$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is sold. The merchandise had a cost of $$129,500.$

Provided a six$-$month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to $4$ percent of sales.

Paid the sales tax to the state agency on $$154,500$ of the sales.

On September $1,$ Year $1,$ borrowed $$19,000$ from the local bank. The note had a $6$ percent interest rate and matured on March $1,$ Year $2.$

Paid $$5,400$ for warranty repairs during the year.

Paid operating expenses of $$53,000$ for the year.

Paid $$126,000$ of accounts payable.

Recorded accrued interest on the note issued in transaction number $6.$

Exercise $9-8$A $($Algo$)$ Part b

b$1.$ Prepare the journal entries for the preceding transactions.

b$2.$ Post the transaction to the appropriate T$-$accounts.