Accrual product warranty Precision Audio Company warrants its products for one year. The estimated product warranty is 3 per cent of sales. Assume that sales were $600 000 for January. In February, a customer received warranty repairs requiring $310 worth of parts and $460 worth of labour.

1 Journalise the adjusting entry required at 31 January, the end of the first month of the current year, to record the accrued product warranty.

2 Journalise the entry to record the warranty work provided in February.