On February 1, Year 1, borrowed $57,000 cash from the local bank. The note had a 6 percent interest rate and was due on June 1, Year 1. Cash sales for the year amounted to $240,000 plus sales tax at the rate of 6 percent. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales. Paid the sales tax to the state sales tax agency on $180,000 of the sales.