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 a - Horizontal Model Required: a-1. Use the horizontal model to show the effect of having the warranty program during 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Balance Sheet Income Statement Assets Liabilities + 11 Stockholders' Equity Net Income Revenues Expenses + +