3.) Ishee Company does not segregate sales and sales tax on its cash register. *

| June 5, 2016

Question
3.) Ishee Company does not segregate sales and sales tax on its cash register. Its register total for the month is $291,500, which includes a 6% sales tax.

Compute sales tax payable and make the entries to record sales and sales taxes payable.

4> Old Hampton Company is preparing adjusting entries at Decmber 31. An analysis reveals the following:

1. during December Old Hampton co sold 3000 units of a product that carries a 60 day warranty. The sales for this product totaled $100,000. The co expects 4& of the units to need repair under the warranty and it estimates that the average repair cost will be $15 per unit.

2. The co has been sued by a disgruntled employee. Legal counsel believes that it is reasonably possible that the co will have to pay $200,000 in damages.

3. The co has been named as one of several defendants in a $400,000 damage suit. Legal counsel believes that it is unlikely to pay damages.

4.Employees earn vacation pay at a rate of 1 day per month. During December 10 employees qualify for vacation pay. Their average daily pay is $90 per employee.

Instrustions

Prepare adjusting entries if required for ach of the four items.

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