Question 5 a) Penang Audio Company warrants its products for one year. The estimated product warranty is 3 per cent of sales. Assume that sales totalled $800,000 for January 2015 In February, a customer received warranty repairs requiring $500 worth of parts and $1,400 worth of labour. Required: i) Journalise the adjusting entry required at 31 January 2015, the end of the first Journalise the entry to record the warranty work provided in February. i Why warranty is necessary? How is it accounted for the provision for month of the current year, to record the accrued product warranty. warranty