The following selected transactions were taken from the books of Ripley Company for 2018: 1. On February 1, 2018, borrowed $59,000 cash from the local bank. The note had a 7 percent interest rate and was due on June 1 2018. 2. Cash sales for the year amounted to $245,000 plus sales tax at the rate of 7 percent. 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 4 percent of sales. 4. Paid the sales tax to the state sales tax agency on $190,000 of the sales 5. Paid the note due on June 1 and the related interest. 6. On November 1, 2018, borrowed $43,000 cash from the local bank. The note had a 7 percent interest rate and a one-year term to maturity. 7. Paid $3,600 in warranty repairs. 8. A customer has filed a lawsuit against Ripley for $12 million for breach of contract. The company attorney does not believe the suit has merit