Please do ALL requirements: $($Questions $1-3)$

Question $1$ has been answered, please do $2$ and $3$

The accounting records of Dee's Appliances included the following balances at the end of the period:

In the past, Dee's warranty expense has been $8\%$ of sales. During the current period, the business paid $$6,000$ to satisfy the warranty claims.

Read the requirements.

Requirement $1.$ Journalize Dee's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required.

Start by journalizing the warranty expense. $($Record debits first, then credits. Exclude explanations from journal entries.$)$

Now journalize the warranty payments.

Begin by showing what the company would report on its income statement at the end of the period.

$1.$Journalize Dee$\text{'}$s warranty expense for the period and the$$ company's cash payments to satisfy warranty claims. Explanations are not required.

$2.$ Show what Dee's will report on its income statement and balance sheet for this situation at the end of the period.

$3.$ Which data item from requirement $2$ will affect the current$$ ratio? Will Dee$\text{'}$s current ratio increase or decrease due to this$$ item?