Question B5. Liability (11 marks) 1. Claire had previously purchased inventory from David on credit for $20 000. On 1 August Claire gave David a 60-day bill of exchange to cover the amount of the account payable plus interest at 10% p... On the maturity date (30 September), Claire paid the liability existing on the bill. Prepare the journal entry to record the issue of the bill on 1 August and the settlement of the bill on 30 September. Narrations are not required. (7 marks) Date Debit $ Credit $ 2. Nunca Appliance Ltd provided a one-year labour and parts warranty with every freezer sold. It was expected that 3000 freezers would be sold during the year. Previous records showed that about 3% of freezers required warranty repairs at an average cost of $300 per freezer. On 1 May, $1000 was paid out for repairs under warranty. Prepare the journal entries related to warranty. Narrations are not required. (4 marks) Date Debit $ Credit $