Question
I'm needing help with these journal entries for the info below. Intex Co. had the following transactions related to various liabilities in the month of
I'm needing help with these journal entries for the info below.
Intex Co. had the following transactions related to various liabilities in the month of October.
Oct. 1
Borrowed $25,000 by signing a 30-day note bearing 7% interest.
Oct. 3
Sold merchandise to a customer for $1,150 in a state with a 6% sales tax.
Oct. 5
Sold merchandise to a customer for $720 in a state with a 6% sales tax.
Oct. 15
Remitted the sales taxes collected to the state for the first half of the month.
Oct. 17
Paid the balance due on a $10,000 90-day note bearing 10% interest.
Oct. 25
Sold merchandise to a customer for $1,050 in state with a 6% sales tax.
Oct. 31
Recognized the warranty cost for the month. Warranty costs for all products sold is estimated to be 1% of sales.
Required:
- Prepare the necessary journal entries for these transactions.
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