Problem 1: Warranty Liability The Jackson Corporation sells home appliances and offers a two year warranty as a standard feature of the sale. It estimates the cost of warranties as 2% of revenues. During the first quarter of this year ended March 31 , Jackson earned revenue of $36,000 Required: a. What is the effect on the balance sheet equation of the necessary adjustment on the March 31, when Jackson prepares its quarterly financial statements? b. In the following April, Jackson pays $95 to repair a customer's wash under the warranty. What is the effect on the balance sheet equation of this transaction