$1.$ MoTown Appliances sells built$-$in ranges for $$1,400$ each. The price includes a one$-$year warranty. During $2024,$ the company sold $1,650$ ranges. On the basis of past experience, approximately $4\%$ of units sold will require warranty replacement at an average cost of $$450$ per unit. The actual warranty costs paid by MoTown during $2024$ were $$25,000.$

Instructions

a$)$ Prepare journal entries to record the estimated warranty expense and the warranty payments during $2024.$

b$)$ Assuming the liability has an unadjusted credit balance of $$900,$ what is the $2024$ adjusted liability balance?