Must Buy sells electronic items with $3$ year warranty. In a particular month, the product sales

were $$390,000$ and warranty sales were $6\%$ of product sales. As it sells quality products,not

many customers come back for repairs. The past records show the repair costs were only $35\%$

of warranty sales and provided the allowance accordingly for this month also.

Warrant repairs reported were:

year $1$ $$3,180$

year $20$

year $32,850$$

Please provide necessary entries and calculate the closing balance in the liability for

warranty expenses $($deferred expenses$)$ assuming the opening balance in the account was

$$8,460\mathrm{.}00.$