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Accrued Product Warranty Back in Time Inc. warrants its products for one year. The estimated product warranty is 7% of sales. Assume that sales were $635,500 for March. In April, a customer received warranty repairs requiring $33,364 of parts. a. Determine the warranty liability at March 31, the end of the first month of the current fiscal year. Round your answer to the nearest dollar b. What accounts are decreased for the warranty work provided in April? Product Warranty Payable and Parts Inventory v Feedback Check My Work a. Increase an expense and Increase a liablility for the products sold times the estimated warranty percentage b. When a warranty is serviced, product warranty payable is decreased as well as any parts of inventory or cash paid for labor