Prist Company had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2022 . Based on an analysis of customer complaints made over the past two years, the cost of a watranty program was estimated at 0.2% of sales. During 2022 , sales totaled $4,475,000. Actual costs of servicing products under warranty totaled $22.200. Exercise 7-12 (Algo) Part a - Horizontal Model Required: a-1. Use the horizontal model to show the effect of having the warronty program during 2022. Indicate the financial statement effect. Nater Enter decteases with a minus sign to indicate a negative financial statement effect. Prist Company had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2022 . Based on an analysis of customer complaints made over the past two years, the cost of a warranty program was estimated at 0.2% of sales. During 2022, sales totaled $4,475,000. Actual costs of servicing products under warranty totaled $22,200. Exercise 7-12 (Algo) Part a - Journal Entry a-2. Record the journal entry to show the effect of having the warranty program during 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 2 Record the accrual of estimated warranty expense for the year. Mote inter denthit befture credits. ancial statement effect