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Stellar Jay Inc sells WIFI enabled bird feeders. At December 31, 2022, the company had a provision for warranties of $220,000.During 2023, sales of products

Stellar Jay Inc sells WIFI enabled bird feeders. At December 31, 2022, the company had a provision for warranties of $220,000.During 2023, sales of products for which warranties were provided amounted to $10 million. Warranty costs are expected to. amount to 4% of sales. During 2023, warranty costs of $430,000 were incurred. Assume Stellar Jay Inc has a December 31 year end and reports under IFS.Required:A) Prepare the entries for 2023 warranty transactions.B) What is the balance of warranty obligation on December 31, 2023, after adjustments?
Stellar Jay Inc sells WIFI enabled bird feeders. At December 31, 2022, the company had a provision for warranties of $220,000. During 2023, sales of products for which warranties were provided amounted to $10 million. Warranty costs are expected to amount to 4% of sales. During 2023, warranty costs of $430,000 were incurred. Assume Stellar Jay Inc has a December 31 year end and reports under IFRS. Required: A) Prepare the entries for 2023 warranty transactions. (2 marks) B) What is the balance of warranty obligation on December 31, 2023, after adjustments? (1 mark)

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