Mackenzie Corp. is preparing the December 31, 2017, year-end financial statements. Following are selected unadjusted account balances:

Estimated warranty liability.................. $6,460 120-days notes payable, 4%...... $80,000

Income tax expense.............................118,800 Unearned revenue.................... 296,000

Additional information:

1. $10,800 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $126,040.
2. A customer is suing the company. Legal advisors believe it is probable that the company will have to pay damages, the amount of which will approximate $140,000 given similar cases in the industry.
3. During December, Mackenzie had sales of $710,000. 5% of sales typically require warranty work equal to 20% of the sales amount.
4. $111,500 of the Unearned Revenues remain unearned at December 31, 2017.
5. The 120-day note payable was dated November 15, 2017.

Required:

adjusting entries at December 31, 2017, for each of the above