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3 The Chair Company provides a 120 day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the Warranty expense for the current

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3 The Chair Company provides a 120 day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the Warranty expense for the current period to be $1,320. During this period, a customer returned a product that cost $990 to repair Required: a. Show the effects of these transactions on the financial statements using a horizontal statements model Use" for increase, for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA). Investing activity (1A), or financing activity (FA). b.&c. Prepare the journal entries to record the warranty expense for the period and payment for the actual repair costs. 3301 Jook Complete this question by entering your answers in the tabs below. Rega Req Band Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase, for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). (Leave no cells blank te certain to select "NA" wherever required.) Event Assets = Liabilities - Equity Revenue Expenses Net Income Cash Flow Estimated warranty expenso Actual warranty costs paid Reg Band > Prepare the journal entries to record the warranty expense for the period and payment for the actual repair costs for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet N Record the warranty expense for the period. Note: Enter debits before credits. Event General Journal Debit Credit b Record entry Clear entry View general Journal Saved Homework Prepare the journal entries to record the warranty expense for the period and payment for the actual rep for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

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