Question 1 A company sells $20,000 worth of product to its customers during October and is paid $21,600 cash. The sales tax rate to the local government agencies is 8%. What is the revenue/sales recorded and what is the liability recorded for October Not enough info O Sales revenue is $21,600 and Sales tax payable is $0 O Sales Revenue is $21,600 and Sales tax payable is $20.000 Sales revenue is $20,000 and Sales tax liability is $1600 Question 2 A company sells washing machines for $1000 each. Each washing machine has a 1 year warranty provided to the customer that the washer will be free of defects. The company estimates warranty expenses to be in accordance with GAAP. Since defects do happen from time to time the company estimates $2/washing machine is a reasonable estimate for warranty expenses. What is the journal entry at the time of sale related to the warranty offered to customers if 300 washing machines are sold during the month? O No journal needed until actual defects occur O Debit: Warranty Expense $600, Credit Estimated Warranty Payable for $600 Debit: AR $300,000, Credit: Sales $300,000 Debit: Sales $600. Credit Cash $600 Question 3 12 The company that sells the washing machines has customers needing replacement of defective parts related to washing machines that are with in the warranty period. The company honors the warranty and replaces $800 worth of defective parts to make things right with various customers. What is the journal to record this actual defect? O Debit: Warranty Expense $800, Credit Washing Machine Parts Inventory $800 Debit: Estimated Warranty payable $600 AND Warranty expense $200. Credit: Washing machine parts inventory $800 O Debit: Estimated Warranty Payable $800, Credit Washing Machine Parts Inventory $800 Debit: Estimated Warranty payable $600 AND Warranty expense $200. Credit: Cash $800 Question 4 Social Security and Medicare are Required payroll withholdings that both the employee and employer are responsible for paying. True O False Question 5 1 pts Which type of payroll item is NOT voluntary for businesses to offer or employees to choose to withhold: O Medial/Health Insurance Federal and State Income tax withholdings 401(k) or Retirement Plan O Union Dues