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Part A . ( 4 Marks ) . Ace Appliances Inc. offers a 1 2 - month warranty on all its appliances. Ace Appliances estimates

Part A.(4 Marks). Ace Appliances Inc. offers a 12-month warranty on all its appliances. Ace Appliances estimates that one appliance out of each 1000 sold will require warranty service and that the average cost per warranty claim is $200. Ace sold 40,000 appliances during 2023.The estimated warranty liability at the beginning of the year was $ 4,500. Claims of $7,000 were actually paid during the year to honour warranties. Ace Appliances has a December 31 year-end.
Required:
1. Calculate the estimated warranty expense for Ace Appliances for 2023.(2 marks)(Need not show calculations)
________________
2. Calculate the balance of the Estimated Warranty Liability account at December 31,2023.(2 marks)(Need not show calculations)
_____________
Part B.(4Marks). For the month of November 2023, Ace Appliances recorded
$ 240,000 in sales, which were all on account. The company is required to charge 6% PST and 5% GST on all sales.
Required:
Prepare the journal entry to record the companys sales activity for November 2023.
Part C (4 marks).On September 30,2023, Ace Appliances (above) borrowed $250,000 from the Peoples National Bank on a nine-month, 7% note. Ace has a December 31 yearend.
Required:
Give the journal entry on June 30,2024 when the note is paid by Ace Appliances. (Need not show calculations)

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