PB $7.$ LO $12\mathrm{.}3$ Shoe Hut sells custom, handmade shoes. It offers a one$-$year warranty on all shoes for repair or replacement. Review each of the transactions and prepare any necessary journal entries for each situation.

May $31$: Shoe Hut sells $100$ pairs of shoes during the month of May at a sales price per pair of shoes of $$240$ cash. Shoe Hut records warranty estimates when sales are recognized and bases warranty estimates on $4\%$ of sales.

June $2$: A customer files a warranty claim that Shoe Hut honors in the amount of $$30$ for repair to laces. Laces Inventory corresponds to shoelace inventory used for repairs.

June $4$: Another customer files a warranty claim that Shoe Hut honors. Shoe Hut replaces the damaged shoes at a cost of $$200,$ affecting their Shoe Replacement Inventory account.

August $10$: Shoe Hut explores the possibility of bankruptcy, given the current economic conditions $($recession$).$ It determines the bankruptcy is unlikely to occur $($remote$).$