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

Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $$13,000$ of accrued vacation benefits for the year.

During December, Maxum Company sold $12,000$ units of a product that carries a $60-$day warranty. December sales for this product total $$460,000.$ The company expects $10\%$ of the units to need warranty repairs, and it estimates the average repair cost per unit will be $$15.$

Prepare adjusting entries at December $31$ for Maxum 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 $$13,000$ of accrued vacation benefits for the year. Record the related adjusting entry.

Note: Enter debits before credits.