Keep Right Ltd. offers a three year unlimited warranty on parts and labour on its products. The warranty is an assurance warranty and cannot be sold separately. The warranty cost is expected to be 1% of sales in the first year, 2% of sales in the second year and 4% of sales in the third year for a total of 7% of sales. The following events and decisions related to the warranty took place during 2020: Sales for 2020 that related to the warranty were $4,200,000. All sales are on credit. Warranty work during 2020 totaled $48,300 for labour and $33,900 for parts consumed from inventory At year end, a review revealed that the percentage estimate used for warranty work should have been 8% not 7%. Required: a. Prepare the journal entries for the events listed above. Due to uncertainty discounting is not used. (8 Marks) b. On January 1, 2020 the balance of the provision for warranty was $93,000 credit. Calculate the balance on December 31, 2020, Keep Right Ltd.'s year end. Be sure to label your calculation and indicate for each element if it is a debit or credit. (4 Marks)