Response to the following questions:
1. On December 30, 2006, you buy a Ford Expedition. It comes with a three-year, 36,000-mile warranty. On January 18, 2007, you return the Expedition to the dealership for some basic repairs covered under the warranty. The cost of the repairs to the dealership is $725. In what year, 2006 or 2007, should Ford Motor Co. recognize the cost of the warranty repairs as an expense?
2. Omaha College requires students to pay tuition each term before classes begin. Students who have not paid their tuition are not allowed to enroll or to attend classes. What accounts do you think would be used by Omaha College to record the receipt of the students' tuition payments? Describe the nature of each account.