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Robert Inc. is a retail company selling technology products online. Roberts fiscal year end is December 31. Below is selected information about Roberts operations during 2021.

1. During March, Robert sold 200 units of one of its technology products at $200 each, subject to provincial sales tax of 8% of the sales price, and goods and services tax of 5% of the sales price. Customers paid for their purchases using either MasterCard or Visa, that both charge Robert Inc. a fee of 2% for their service.

   Each unit carries a one-year warranty. Robert promises to repair the unit should it become defective. The estimated cost to the company to honour the warranty is $30 per unit and experience has shown that approximately 7% of all units may have to be repaired during the warranty period.

   a) Prepare journal entries to record (1) sales during the first quarter of 2021 and (2) the associated warranty expense. (5 marks)

2. The payroll register for February 2021 showed the following totals. Salaries were paid on February 28.

   
   

   Gross salaries	$19,500
   Income taxes withheld	4,200
   Quebec Pension Plan (QPP) withheld	975
   Private medical insurance deductions	675
   Employment insurance (EI) withheld	448
   Union dues withheld	324

   1. How much cash did Robert Inc. pay to the employees on February 28? (1 mark)
   2. What is the total compensation expense that should be recorded on Robert Inc.s books for February 28, assuming that the employer is required to pay a matching amount of the QPP deductions and 1.40 times the EI deductions? (2 marks)

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