Question 1.1. Monroe Company provides warranties for customers on sales of their clocks. They estimate that 2% of their sales will require warranty claims. In 20X3, they had $525,000 in sales of clocks. The beginning balance in the estimated warranty payable account was $8,500. They paid claims of $13,275 throughout the year. What should be the ending balance in the estimated warranty payable account? (Points : 20)

$10,500 $19,000 $5,725 $4,775

Question 2.2. The current portion of notes payable account would generally hold ________. (Points : 20)

promissory notes that must be paid within one year promissory notes and interest charged on the notes that must be paid within one year the principal amounts of long-term debt that will be paid within one year the principal amounts of long-term debt and the interest charged on the principal that will be paid within one year

Question 3.3. When the employer remits federal income tax withheld from employees paychecks, the entry to record the payment should include a debit to ________. (Points : 20)

payroll tax expense employee income tax payable salary expense employee benefits payable

Question 4.4. Artistic Metals sold some yard art for $50.00 and collected 6% sales tax. Which journal entry reflects this sale? Ignore inventory and cost of goods sold for this question. (Points : 20)

Cash		53.00
Sales Revenue			53.00

Cash		53.00
Sales Revenue			50.00
Sales Tax Payable			3.00

Cash		53.00
Sales Revenue			50.00
Sales Tax Expense			3.00

Cash		50.00
Sales Tax Expense		3.00
Sales Revenue			53.00

Question 5.5. Compensation to an employee based on a percent of a sale amount is a ________. (Points : 20)

salary bonus commission benefit