During a recent year, Motorola, Inc., had sales of $31,323,000,000. An analysis of Motorola’s product warranty payable account for the year was as follows:

Product warranty payable, January 1 ... $ 359,000,000

Product warranty expense ........ 648,000,000

Warranty claims paid* ........ (507,000,000)

Product warranty payable, December 31 . $ 500,000,000

* The amount reported for Warranty Claims Paid includes other adjustments.

a. Determine the product warranty expense as a percent of sales. Round to two decimal places.

b. Record the adjusting entry for the product warranty expense for the year.