Prepare adjusting entries at December 31 for Maxum Company’s year-end financial statements for each of the following separate transactions.

1. Employees earn vacation pay at a rate of one day per month. Maxum estimated and must expense $13,000 of accrued vacation benefits for the year.

2. During December, Maxum Company sold 12,000 units of a product that carries a 60-day warranty.

December sales for this product total $460,000. The company expects 10% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15.