The following selected transactions relate to liabilities of interstate farm equipment company for december 2021. interstate’s fiscal year ends on december 31. required: prepare the appropriate journal entries for these transactions. 1. on december 15, received $13,000 from bradley farms toward the sale by interstate of a $169,000 tractor to be delivered to bradley on january 6, 2022. 2. during december, received $36,000 of refundable deposits relating to containers used to transport equipment parts. 3. during december, credit sales totaled $942,000. the state sales tax rate is 5% and the local sales tax rate is 2%. (this is a summary journal entry for the many individual sales transactions for the period.)

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?