Required information

$[$The following information applies to the questions displayed below.$]$

At the end of $2025,$ the following information is available for Great Adventures.

Additional interest for five months needs to be accrued on the $$36,000,6\%$ note payable obtained on August $1,2024.$

Recall that annual interest is paid each July $31.$

Assume that $$12,000$ of the $$36,000$ note discussed above is due next year. Record the entry to reclassify the current

portion of the long$-$term note.

By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$25,300$ during

the year and recorded those as Deferred Revenue.

Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company

believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $$15,000.$

For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the

company estimates future warranty costs to be $$6,000.$

Required:

$.$ Record each of the transactions above on December $31,2025.($If no entry is required for a transaction$/$event$,$ select $"$No Journal

Entry Required" in the first account field.$)$

Journal entry worksheet

Additional interest for five months needs to be accrued on the $$36,000,6\%$

note payable obtained on August $1,2024.$ Recall that annual interest is paid

each July $31.$ Record the adjusting entry.

Note: Enter debits before credits.