Listed below are a few transactions and events of Maxum Company.
1. Employees earn vacation pay at a rate of one day per month. During December, 20 employees qualify for one vacation day each. Their average daily wage is $160 per employee.
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.
Prepare any necessary adjusting entries at December 31, 2013, for Maxum Company’s year-end financial statements for each of the above separate transactions and events.

a:Employees earn vacation pay at a rate of one day per month. During December, 23 employees qualify for one vacation day each. Their average daily wage is $160 per employee. Prepare the related adjusting entry.
b:During December, Maxum Company sold 3,900 units of a product that carries a 60-day warranty. December sales for this product total $123,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $19. Prepare the related adjusting entry.