Recording adjustment entries

The following additional information is provided for the month ending 30th of September 2020. E Bike City posts adjustment entries on a monthly basis.

1) E Bike City sells their products with a 1-year labour and parts warranty. E Bike City has a provision for warranty account. Erica, the owner of E Bike City would like to increase the business provision for warranty accounts balance as at 30 September by $1,000

2) Erica, the owner of E Bike City would like to increase allowance for doubtful debts by $120.00 as at 30 September.

Required:

Based on the information given above, you are required to record the appropriate adjustment entries using the accurate double entry system of accounting.