GOT Jetski Corp. has sold motorized watercraft for a number of years. GOT includes a three$-$year

warranty on each watercraft they sell. Management estimates that the cost of providing the warranty

coverage is $2\%$ of sales in the first year and $3\%$ of sales in each of years two and three. Other facts follow:

GGT reported a $$270,000$ provision for warranty payable on its December $31,2025$ balance sheet.

GGT$\text{'}$s sales for $2026$ totalled $$6,000,000$ spread evenly through the year.

The cost to GGT of meeting their warranty claims in $2026$ was $$480,000$;$$300,000$ for parts and

$$180,000$ for labour.

GGT$\text{'}$s sales for $2027$ totalled $$6,200,000$ spread evenly through the year.

The cost to GGT of meeting their warranty claims in $2027$ was $$468,000$;$$280,800$ for parts and

$$187,200$ for labour. Based on recent claims history, GGT revises their $2027$ warranty provision to $9\%$ of

sales.

Required:

a$.$ Prepare summary journal entries to record warranty expense and warranty claims in $2026$ and $2027.$

b$.$ Determine the provision for warranty payable that GGT will report as a liability on December $31,2027.$