Manituc Beading,which Resides in a 5% Sales Tax County,sold $13,000

Essay

Manituc Beading,which resides in a 5% sales tax county,sold $13,000 worth of beads to customers in January,2X03 for cash.The company uses the periodic inventory system.Since beads were difficult to carry home,Manituc Beading offered a convenient carrying case for customers to use with the stipulation that it should be returned by the end of the month of the original sale.If customers did not return the case by January 31,2X03,Manituc Beading's agreement was to keep the deposit money.Customers paid $200 cash in carrying case deposits during January,2X03 and Manituc Beading returned $170 of the money to customers by January 31,2X03.In addition,although Manituc Beading rarely encounters batches of defective beads,it does occur on occasion.Manituc Beading estimates .5% of sales to be returned as defective,and offers a cash refund warranty for one year after purchase.
Required:
1.Prepare the journal entry to record sales and sales tax for January,2X03.
2.Prepare the journal entry to record returnable deposit money received in January,2X03.
3.Prepare the journal entry to record deposit money returned to customers and the portion of the deposit money kept by Manituc Beading.
4.Prepare the journal entry to record estimated product warranties.