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 $$6,720$ of accrued vacation

benefits for the year.

During December, Maxum Company sold $3,900$ units of a product that carries a $60-$day warranty. December sales for this

product total $$133,000.$ The company expects $8\%$ 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 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 $$6,720$ of accrued vacation benefits for the year.

Record the related adjusting entry.

Note: Enter debits before credits.