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The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On February 1, Year 1, borrowed $47,000 cash from

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The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On February 1, Year 1, borrowed $47,000 cash from the local bank. The note had a 6 percent interest rate and was due on June 1 . Year 1. 2. Cash sales for the year amounted to $235,000 plus sales tax at the rate of 6 percent. 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 3 percent of sales. 4. Paid the sales tax to the state sales tax agency on $195,000 of the sales. 5. Paid the note due on June 1 and the related interest. 6. On November 1, Year 1, borrowed $48,000 cash from the local bank. The note had a 9 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 $1.1 million for breach of contract. The company attorney does not believe the suit has merit. Post the liabilities transactions to T-accounts at December 31, Year 1. (Do not round intermediate calculations. Round you dollar amount.)

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