Thompson Go-Karts sells motorized go-karts. Thompson Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a perpetual inventory system. Selected transactions in the month of December follow (Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare the journal entries to record the transactions shown. Omit explanations. (Record debits first, then credits. Explanations are not required. For situations that do not require an entry, make sure to select "No entry required in the first cell in the "Accounts column and leave all other cells blank.) Dec 1: Thompson sold 12 go-karts on account. The selling price of each go-kart was $1.700, the cost of goods sold for each was $400. Do not record the cost related to the sale. We will do this in the next joumal entry Journal Entry Accounts Date Debit Credit Dec 1 an office building on th Now record the cost related to the sale above. Journal Entry Accounts Debit Credit Date Dec Choose from any list or enter any number in the input fields and then continue to the next question Thompson Go-Karts solis motorized go-karts. Thompson Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a perpetual inventory system. Selected transactions in the month of December follow (Click the icon to view the transactions.) Read the requirements Now record the cost related to the sale above. Journal Entry Accounts Date Dobit Dec 1 Dec 5: Thompson received notice of a class-action lawsuit being filed against it. The lawsuit claims that Thompson's go-karts have engine defects that appear after the warranty period expires. The plaintiffs want Thompson to replace the defective engines anpay damages for the owners' loss of use. The cost of replacing the engines would be approximately $425,000 (not including any damages). Thompson's attorney believes that it is reasonably possible that Thompson will lose the case, but the attorney cannot provide a dollar estimate of the potential loss amount Journal Entry Accounts Date Debit Credit Dec 5 Choose from any list or enter any number in the input fields and then continue to the next question Thompson Go-Karts seils motorized go-karts. Thompson Go Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a perpetual inventory system. Selected transactions in the month of December follow (Click the icon to view the transactions.) Read the requirements Dec 20: Thompson performed repairs due to product warranty complaints for two go-karts sold earlier in the year. Thompson's cost of the repairs, paid in cash, was $750 Journal Entry Accounts Date Dec 20 office building on th Dec 22: An individual claims that he suffered emotional distress from a high-speed ride on Thompson Go-Kart and is seeking $520,000 in damages. Thompson's atomey believes the case is frivolous because it does not have any legal merit Journal Entry Accounts Debit Credit Date Dec 22 Choose from any list or enter any number in the input fields and then continue to the next question Thompson Go-Karts sells motorized go-karts. Thompson Go-Karts are motorized and are typically purchased by amusement parks and other recreation facilities, but are also occasionally purchased by individuals for their own personal use. The company uses a perpetual inventory system. Selected transactions in the month of December follow: (Click the icon to view the transactions.) Read the requirements Dec 27: Another customer is suing Thompson for $150,000 because a defect in the customer's Thompson Go-Kart engine started a fire and destroyed the customer's garage. Thompson's attomey believes the customer will probably win the case and receive $150,000. (Use the following account names: Loss from Lawsuit and Accrued Liability from Lawsuit.) Journal Entry Accounts Date Debit Credit Dec 27 Dec 31: Thompson estimates that the warranty expense is 6% of gross sales, Thompson's gross sales for the period totaled $760,000 nn office building on th Journal Entry Accounts Date Debit Dec 31 Choose from any list or enter any number in the input fields and then continue to the next