Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 4% $ 6,610 135,300 486,000 120-day note payable, 3% Unearned revenues Warranty expense $ 95,000 311,000 7,900 Additional Information: a. $12,300 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 $141,040. b. A customer is suing the company. Legal advisers belleve it is probable that the company will have to pay damages, the amount of which will approximate $155,000 given similar cases in the industry. c. During December, Mackenzie had sales of $725,000. 4% of sales typically require warranty work equal to 20% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $113,000 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023.