Nov. 1 dollar store purchases merchandise for $1,600 on terms of 2/5, n/30, fob shipping point, invoice dated november 1. 5 dollar store pays cash for the november 1 purchase. 7 dollar store discovers and returns $100 of defective merchandise purchased on november 1, and paid for on november 5, for a cash refund. 10 dollar store pays $80 cash for transportation costs for the november 1 purchase. 13 dollar store sells merchandise for $1,728 with terms n/30. the cost of the merchandise is $864. 16 merchandise is returned to the dollar store from the november 13 transaction. the returned items are priced at $200 and cost $100; the items were not damaged and were returned to inventory. journalize the above merchandising transactions for the dollar store assuming it uses a perpetual inventory system and the gross method.

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."