Ch 7 HW Part 1 Seved 3 2 Dont The Chair Company provides a 120-day parts and labor warranty on all merchandiselt sells. The Chair Company estimates the warranty expense for the current period to be $1040. During the period a customer returned a product that cost $780 to repair Required o. Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use a to indicate increase or a - for decrease of the element is not affected, leave the cell blank. In the Cash Flow column Indicate whether the item is an operating activity (OA). Investing activity (A) or financing activity (FA) (Not all cells will require entry) Hot CHAIR COMPANY Horizontal Statements Model Balance Sheet Income Statement Liabilities Stockholders Revenue Equity Expense - Net Income Assets Statement of Cash Flow Event Estimates Pad