Required information Exercise 9-8A (Algo) Current liabilities Lo 9-1, 9-2, 9.4 [The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Year 1 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased merchandise inventory or $176,500 on account. 3. Sold merchandise for $209,000 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $134,000 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $159.000 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 5 percent interest rate and matured on March 1. Year 2 7. Paid $5,500 for warranty repairs during the year 8. Paid operating expenses of $52.500 for the year 9. Paid $124.100 of accounts payable 10. Recorded accrued interest on the note issued in transaction number 6