ccrued Product Warranty

A Wrinkle in Time Inc. warrants its products for one year. The estimated product warranty is 6.5% of sales. Assume that sales were $912,000 for March. In April, a customer received warranty repairs requiring $50,388 of parts.

a. Determine the warranty liability at March 31, the end of the first month of the current fiscal year. Round your answer to the nearest dollar. $fill in the blank 1

b. What accounts are decreased for the warranty work provided in April? Choose.

Parts Inventory Expense and Cash

Product Warranty Payable and Parts Inventory

Warranty Repair Expense and Cash

Parts Inventory Expense and Warranty Repair Expense