Question #2 GUT Jetsld Corp. has sold motorized watercraft for a number of years. GD includes a threeyear warranty on each watercraft they sell. Management estimates that the cost of providing the warranty coverage is 2% of sales in rst year and 0% of sales in each ol years two and three. Other tacts follow - GGT reported a $2?0,000 provision for warranty payable on its Dec 01, 201? balance sheet. - GGT's sales for 2010 totaled $0,000,000 spread evenly through the - The cost to GET of meeting their warranty claims in 2010 was $400, $000,000 for parts and $100,000 for labour. - GGT's sales for 2010 totaled $0,200,000 spread evenly through the - The cost to GET of meeting their warranty claims in 2010 was $400, $200,000 for parts and $102,200 for labour. Based on recent claims history, GGT revises their 2010 warranty provision to 0% ol sales. Required: a. Prepare summaryjournal entries to record warranty expense and w claims in 2010 and 2010. (2 marks) Answer here: b. Determine the provision for warranty payable that GGT will report as liability on December 01, 2010. (1 mark) Answer here