Reference no: EM133063907

Problem 1 - Assume, that on October 14, 2021, Nowell Brands, Inc., borrowed $6,400,000 cash from Bank of America to meet short-term obligations. Nowell Brands signed a 3% note and promised to repay the note in 120 days. All interest will be paid when the note is due. Assume the company records only the two entries: borrowing and payment. Use 360-day year and round your answer to the nearest dollar.

Required -

1. Find the maturity date of the note. Maturity date is?

2. Record the issuance of the note on October 14.

3. Record payment of the note and interest at maturity.

Problem 2 - Jupiter, inc. sells its products with a one-year warranty. The estimated product warranty is 3% of sales. Assume that Jupiter had sales of $568,000 during October this year. On November 12, a customer received warranty repairs requiring $144 of parts and $200 of labor.

Required -

1. Record the adjusting entry to accrue warranty expense on October 31.

2. Record the journal entry for the warranty work provided in November.