The accounting records of Clay's Appliances included the following balances at the end of the period:

In the past, Clay's warranty expense has been $9\%$ of sales. During the current period, the business paid $$9,500$ to satisfy the warranty claims.

Read the requirements.

Requirement $1.$ Journalize Clay's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required.

Start by journalizing the warranty expense. $($Record debits first, then credits. Exclude explanations from journal entries.$)$

$\backslash$table$[[$Journal Entry,,$],[$Date Accounts,Debit,Credit$],[$Warranty Expense,$10440,],[,$Accrued Warranty Payable,$],[,,]]$

Now journalize the warranty payments.

$\backslash$table$[[$Journal Entry,,,$],[$Date$,$Accounts,Debit,Credit$],[,$Warranty Expense,$9500,],[,$Accrued Warranty Payable,,$],[,,,]]$

Begin by showing what the company would report on its income statement at the end of the period.

Income Statement

$\backslash$table$[[$Sales revenue$],[]]$

Now show what the company would report on its balance sheet at the end of the period

Balance Sheet

$$

Requirement $3.$ Which data item from requirement $2$ will affect the current ratio? Will Clay's current ratio increase or decrease due to this item?

Which data item from Requirement $2$ will affect Clay's current ratio? Accrued warranty payable

Will Clay's current ratio increase or decrease as a result of an increase in this item? Decrease

I need help with the income statement snd the balance sheet