Nelson, Inc. sold equipment in $2023$ for $$200,000.$ The equipment carries a one$-$year warranty against manufacturer's defects. Nelson estimates that the probable warranty costs associated with the equipment is $4\%$ of the sales figure.

During $2023,$ customers made warranty claims totaling $$3,000.$

Required:

a$.$ Record the contingent liability for warranty costs in $2023.$

b$.$ Record the payment for the warranty work performed in $2023.$