Selected transactions of Patagonia Company are described below.

Required:

Using the information provided, record the following journal entries. When calculating interest, do not round intermediate amounts, but do round the final amount to the nearest dollar. Use a $365-$day year. Patagonia offers a $1-$year warranty on the merchandise it sells.

Patagonia Company borrowed $$28,000$ from Fifth State Bank by signing a $5\%,180-$day note dated September $16,2025.$

Dec $31--$ In $2025,$ Patagonia Company had sales of $$120,000.$ The cost of the merchandise sold was $$78,000.$ Record the sales and cost of sales in two separate entries. Assume that all sales were for cash.

Dec $31--$ In $2025,$ Patagonia Company had sales of $$120,000.$ The cost of the merchandise sold was $$78,000.$ Record the sales and cost of sales in two separate entries. Assume that all sales were for cash.

Dec $31--$ The state charges $4\%$ sales tax. Record the sales tax collected on $2025$ sales, to be remitted to the state Department of Revenue in January.

Dec $31--$ Recorded the adjusting entry to recognize the estimated warranty expense associated with the $2025$ sales. Estimated that warranty expense will be $7\%$ of sales.

Dec $31--$ Recorded the adjusting entry for accrued interest on the note.

Jan $15--$ Paid the sales taxes collected on $2025$ sales to the state Department of Revenue.

Feb $3--$ Performed a warranty repair. The cost of the replacement parts was $$64.$

Mar $15--$ Paid the maturity value of the note due Fifth State Bank.