Reference no: EM133360281

Question: Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2023. An analysis reveals the following: a. During December, Superior sold 6,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38. b. An employee is suing the company. Legal advisers believe that it is probable that Superior will have to pay damages, the amount of which cannot be reasonably estimated. c. Superior needs to record previously unrecorded cash sales of $2,100,000 (cost of goods sold is 65%) plus applicable 13% HST. d. Superior recognizes that $95,000 of $160,000 received in advance for skateboards has now been earned. e. Superior credit sales for the year was $100,000. It estimates that 5% of the credit sales are uncollectible. No bad debt expense has been recorded. Q4

Required: Prepare any required adjusting entries at December 31, 2023, for each of the above transactions in the worksheet below. (If no entry is required for a transaction/event, type "No journal entry required" in the first account field.)