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, 31 employees qualify for one vacation day each. Their average daily wage is $310 per employee.
2. During December, Maxum Company sold 3,800 units of a product that carries a 60-day warranty. December sales for this product total $125,000. The company expects 9% 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 Companys year-end financial statements for each of the above separate transactions and events.

• 1

  Employees earn vacation pay at a rate of one day per month. During December, 31 employees qualify for one vacation day each. Their average daily wage is $310 per employee. Record the related adjusting entry.

• 2

  During December, Maxum Company sold 3,800 units of a product that carries a 60-day warranty. December sales for this product total $125,000. The company expects 9% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15. Record the related adjusting entry.