Listed below are a few transactions and events of Centennial Company.

Employees earn vacation pay at a rate of one day per month. Centennial estimated and must expense $$3,000$ of accrued vacation benefits for the year.

During December, Centennial Company sold $3,500$ units of a product that carries a $60-$day warranty. December sales for this product total $$135,000.$ The company expects $7\%$ of the units to need warranty repairs, and it estimates the average repair cost per unit will be $$12.$

Prepare adjusting entries at December $31$ for Centennial Company's year$-$end financial statements for each of the above separate transactions.

Journal entry worksheet

A B

Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $$3,000$ of accrued vacation benefits for the year.

Record the related adjusting entry.