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Problem 9 (14 pts) Warranty. During 2023, Evision sold $820,000 of a therapeutic chair that carries a one-year warranty against manufacturer's defects. Warranty costs are

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Problem 9 (14 pts) Warranty. During 2023, Evision sold $820,000 of a therapeutic chair that carries a one-year warranty against manufacturer's defects. Warranty costs are expected to approximate 5% of sales. Actual expenditures for warranty repair costs in 2023 were $46,000. The state sales tax rate is 4% and the local sales tax is 2%. Required: a. Prepare the journal entry to record the sales and related sales taxes, assuming all sales were cash sales (4 pts). b. Prepare journal entries related to any aspects of the warranty that should be recorded during 2023 ( 5 pts). c. Suppose that at the end of 2023 , the warranty liability account had a balance of $9,000. What should be the balance of this account at the beginning of 2023 (3 pts)? d. Customers are offered the opportunity at the time of purchase to also buy a two-year extended warranty for an additional charge. On January 2,2023, Evision sold a $40 extended warranty, covering years 2023 and 2024. Prepare the journal entry to record the sale of the extended warranty on Jan. 2

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