Required information

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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 $0\mathrm{.}3\%$ of sales. During $2022,$ sales totaled $$4,408,000.$ Actual costs of servicing

products under warranty totaled $$21,300.$

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.