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

Employees earn vacation pay at a rate of one day per month. During December, 25 employees qualify for one vacation day each. Their average daily wage is $290 per employee.

During December, Maxum Company sold 3,800 units of a product that carries a 60-day warranty. December sales for this product total $130,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $17.

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, 25 employees qualify for one vacation day each. Their average daily wage is $290 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 $130,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $17. Record the related adjusting entry.

Transaction	General Journal	Debit	Credit
1