Accrued Product Warranty A Wrinkle in Time Inc. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $950,500 for March. In April, a customer received warranty repairs requiring $40,396 of parts, a. Determine the warranty hability 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 Fortback Check My Work a. Increase an expense and increase a liability 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