Milner Company is preparing adjusting entries at December 31. An analysis reveals the following:

1.During December, Milner Company sold 8,900 units of a product that carries a 60-daywarranty. The sales for this product totalled $200,000. The company expects 5% of the units to need repair under the warranty and it estimates that the average repair cost per unit will be $30.

2.The company has been sued by a disgruntled employee. Legal counsel believes it is likely thatthe company will have to pay $150,000 in damages.

3.The company has been named as one of several defendants in a $350,000 damage suit. Legalcounsel believes it is unlikely that the company will have to pay any damages.

4.During December, ten employees earn vacation pay at a rate of 1 day per month. Their averagedaily wage is $160 per employee.

prepare adjusting entries, if required, for each of the four items.