Question: I need help with this question. Intex Co. had the following transactions related to various liabilities in the month of October. Oct. 1 Borrowed $25,000
I need help with this question.
Intex Co. had the following transactions related to various liabilities in the month of October.
Oct. 1
Borrowed $25,000 by signing a 30-day note bearing 7% interest.
Oct. 3
Sold merchandise to a customer for $1,150 in a state with a 6% sales tax.
Oct. 5
Sold merchandise to a customer for $720 in a state with a 6% sales tax.
Oct. 15
Remitted the sales taxes collected to the state for the first half of the month.
Oct. 17
Paid the balance due on a $10,000 90-day note bearing 10% interest.
Oct. 25
Sold merchandise to a customer for $1,050 in state with a 6% sales tax.
Oct. 31
Recognized the warranty cost for the month. Warranty costs for all products sold is estimated to be 1% of sales.
Required:
- Prepare the necessary journal entries for these transactions.
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