Question 5

Exercise 9-15 (Algo) Accounting for estimated liabilities LO P4 Listed below are a few transactions and events of Maxum Company 1. Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $5,320 of accrued vacation benefits for the year. 2. During December, Maxum Company sold 4,300 units of a product that carries a 60-day warranty. December sales for this product total $128,000. The company expects 9% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15 Prepare adjusting entries at December 31 for Maxum Company's year-end financial statements for each of the above separate transactions. View transaction list Journal entry worksheet A B > Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $5,320 of accrued vacation benefits for the year. Record the related adjusting entry. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 View transaction list Journal entry worksheet