The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,500 from the issue of common stock. Purchased equipment inventory of $176,500 on account. Sold equipment for $207,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $132,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. Paid the sales tax to the state agency on $157,000 of the sales. On September 1, Year 1, borrowed $19,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2. Paid $5,700 for warranty repairs during the year. Paid operating expenses of $55,500 for the year. Paid $124,100 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.