Required information Exercise 7-12 (Static) Other accrued liabilities-warranties LO 7-5 [The following information applies to the questions displayed below.] Prist Company had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2022. Based on an analysis of customer complaints made over the past two years, the cost of a warranty program was estimated at 0.5% of sales. During 2022, sales totaled $4,100,000. Actual costs of servicing products under warranty totaled $18,700. Exercise 7-12 (Static) Part b b. What type of accrual adjustment should be made at the end of 2022? Multiple Choice O At the end of 2022 an adjustment should be made to increase the warranty expense already recognized to the amount of cost incurred, and to accrue additional estimated warranty expense related to other items sold in 2022 that are still under warranty. At the end of 2022 an adjustment should be made to decrease the warranty expense already recognized to the amount of cost incurred, and to accrue additional estimated warranty expense O related to other items sold in 2022 that are still under warranty. No accrual adjustment is required