On January 1, 2017, the ledger of Accardo Company contains the following liability accounts.

Accounts Payable	$53,500
Sales Taxes Payable	7,800
Unearned Service Revenue	15,500

During January, the following selected transactions occurred.

Jan. 5	Sold merchandise for cash totaling $19,872, which includes8% sales taxes.
12	Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
14	Paid state revenue department for sales taxes collected in December 2016 ($7,800).
20	Sold900units of a new product on credit at $50per unit, plus8% sales tax. This new product is subject to a 1-year warranty.
21	Borrowed $29,250from Girard Bank on a3-month,8%, $29,250note.
25	Sold merchandise for cash totaling $11,988, which includes8% sales taxes.

Journalize the January transactions.

Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal7% of sales of the new product. (Hint:Use one-third of a month for the Girard Bank note.)

Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in accounts payable.