1)During the year ended 30/6/2020, the company made $150,000 in sales of inventory. At the end of that financial year (30/6/2020), the company decided to increase the warranty provision by $3,000. The opening balance for the warranty provision was $1,200.

Prepare general journal entries for the following events and transactions.

a.Adjust the warranty provision on 30/6/2020

b.During the following year, the company paid $900 to fix inventory that was repaired under warranty.

c.Prepare a T account to show the movements in the warranty provision account, based on the information above.