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Prist Co. had not provided a warranty on its products but competitive pressures forced management to add this feature at the beginning of 2016. the

Prist Co. had not provided a warranty on its products but competitive pressures forced management to add this feature at the beginning of 2016. the cost of the warranty program was estimated at 0.3% of sales. 2016 sales totaled 6,900,000. Actual cost of servicing products under warranty totaled 19,400.

  1. Use the horzontal method to show the effect of having the program in 2016

  1. What type of accrual adjustment should be made at the end of 2016?

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