The following items were selected from among the transactions completed by Switch Co$.$ during the current year:

Jan $9$ Purchased merchandise on account from Beckham Co$,$ $$440,000,$ terms n$/30.$

Feb $8$ Issued a $60-$day, $9\%$ note for $$440,000$ to Beckham Co$.,$ on account.

Apr $9$ Paid Beckham Co$.$ the amount owed on the note of February $8.$

May $1$ Borrowed $$340,000$ from Verizon Bank, issuing a $90-$day, $4\%$ note.

Jun $2$ Purchased tools by issuing a $$230,000,60-$day note to Rapunzel Co$.,$ which discounted the note at a rate of $6\%.$

Jul $29$ Paid Verizon Bank the interest due on the note of May $1$ and renewed the note by issuing a new $90-$day, $9\%$ note for $$340,000$ note. $($Journalize both the debit and credit to the notes payable account$)$

Aug $1$ Paid Rapunzel Co$.$ the amount due on the note of June $2.$

Oct $27$ Paid Verizon Bank the amount due on the note of July $29.$

Dec $1$ Purchased office equipment from Lincoln Co$.$ for $$700,000$ paying $$200,000$ and issuing a series of ten $6\%$ notes for $$50,000$ each, coming due at $30-$day intervals.

$15$ Settled a product liability lawsuit with a customer for $$220,000$ payable in January. Switch accrued the loss in a litigation claims payable account.

$31$ Paid the amount due Lincoln Co$.$ on the first note in the series issued on December $1.$

Instructions:

$1.$ Journalize the transactions.

$2.$ Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:

a$.$ Product warranty cost, $21,700.$

b$.$ Interest on the nine remaining notes owed to Lincoln Co$.$