Answer the following question:

Tamanah Auto Parts Inc. offers a six-month warranty on parts that the company has installed. The warranty ensures that parts are working as intended. The warranty covers the cost of parts, plus labour for repairs. Warranty costs are estimated to be 1.5% of sales for parts plus 3% of sales for labour. On 1 April, the warranty liablity had a $16,400 credit balance. Warranty work in April consumed $8,700 of parts and $14,000 of labour. Sales amounted to $550,000 in April.

What amount of warranty expense should be recorded in April? Explain work clearly step by step. (Answer: 24750)

What is the balance in the warranty provision at the end of April? Explain work clearly step by step. (Answer: 18450)