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A company sells its product subject to a warranty that covers the cost of parts for...

A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 3% of sales. During the month of June, the company performed warranty work and used $12,000 worth of parts to do the warranty work. Sales for June amounted to $500,000

1.Calculate the warranty expense for the month of June

2. If the Estimated Warranty Liability account had a credit balance of $24,000 on May 31, what is the account balance at June 30?

3. A company issued a 7%, 90 day Note Payable to cover some Accounts Payable of a balance of 27,000. The Note was signed on April 1. What amount of interest would be owed on May 31?    

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