Listed below are a few transactions and events of Jester Company.

Listed below are a few transactions and events of Jester Company.

1.	During December, Jester Company sold 3,000 units of a product that carries a 60-day warranty. December sales for this product total $120,000. The company expects 8% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15.
2.	Employees earn vacation pay at a rate of one day per month. During December, 20 employees qualify for one vacation day each. Their average daily wage is $120 per employee.

Prepare any necessary adjusting entries at December 31, 2011, for Jester Company’s year-end financial statements for each of the above separate transactions and events. (Omit the "$" sign in your response.)

	General Journal	Debit	Credit
1.	Warranty expense
	Estimated warranty liability
2.	Vacation benefits expense
	Vacation benefits payable

Explanation:

Warranty expense = 3,000 units × 8% × $15 = $3,600.

Vacation benefits expense = 20 employees × 1 day × $120 = $2,400.