Prepare all the journal entries necessary to record the following transactions for Orange Computer Company, which has a March 31 fiscal year end.

Orange Computer designs and manufactures laptop computers. Orange sells direct to customers who pay for items when ordered. The price of the laptops includes shipping and a 1-year warranty. Warranty costs are estimated at 3% of the sales price. Gross margin on computers is 45%. Customers can purchase an extended warranty for $180 to cover the laptop for 2 additional years. Orange collects 7% sales tax on the orders.

12/1/18: Sold and shipped one computer for $1,000. Cost to ship item was $35. Customer purchased an extended warranty.

1/5/19: Sales tax was paid to the state of California.

3/24/19: Item returned for warranty and $20 of cost incurred.

3/31/19: Fiscal yearend. Prepare adjusting entries, if any.

3/31/20: Fiscal yearend. Prepare adjusting entries, if any.