Question 1: METU Company had the following selected transactions:

Feb. 1 Signs a $40,000, 6-month, 8%-interest-bearing note payable to IS Bank and receives $40,000 in cash.

10 Cash register sales total $43,200, which includes an 8% sales tax.

28 Some sales were made under warranty. Of the units sold under warranty, 220 are expected to become defective. Repair costs are estimated to be $30 per unit.

Instructions: Journalize the February transactions.