Required information [The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company recelved $50,000 from the issue of common stock. 2. Purchased merchandise inventory of $380,000 on account. 3. Sold merchandise for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year 9. Paid $250,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6