Streep factory provides a 2-year warranty with one of its products which was first sold in 2020. streep sold $1,000,000 of products subject to the warranty. streep expects $125,000 of warranty costs over the next 2 years. in that year, streep spent $70,000 servicing warranty claims. prepare streep’s journal entry to record the sales (ignore cost of goods sold) and the december 31 adjusting entry, assum- ing the expenditures are inventory costs.

The mccolls have made an offer on a new home. the home is new construction and scheduled to be completed by the end of the year. they provide a purchase deposit--a check in the amount of $40,000--to their agent, suzette. suzette, at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of receipt of the funds. did suzette follow the proper procedures? a. no, the check should not have been cashed. if a check is used as an earnest money deposit, it is to be held until acceptance of the offer. the seller must also be informed the buyer's check is being held and not negotiated.b. yes, suzette deposited the earnest money in the broker's trust fund account as directed. she also deposited the check within three business days of receipt. unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.c. no, suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days.d. both a and c