The Caldwell Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Caldwell Company is authorized to issue 250,000 shares of $1 par value common stock and 85,000 shares of 6%, $30 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 7% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month