Oxy Inc. sells products with warranties included in the selling price. By law, Oxy is required to charge 8% sales tax. During October, Oxy sold $10,000 worth of products costing $8,000 for cash. Oxy estimates warranty costs to be 1% of selling price. During October, Oxy made $90 of repairs under warranty (paid in cash). On October 31, Oxy remitted all sales tax collected during the month to the state government.

Journalize all of Oxys transactions for the month of October.

If the balance in Oxys warranty liability account was $50 on October 1, what is the balance in this account at October 31?

Is sales tax payable a contingent liability? Why or why not?

Is the warranty liability a contingent liability? Why or why not?