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The Chair Company has a policy to provide a 120-day parts-and-labor warranty whenever it sells a merchandise inventory item. It is estimated that the warranty

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The Chair Company has a policy to provide a 120-day parts-and-labor warranty whenever it sells a merchandise inventory item. It is estimated that the warranty expense for the current period to be $1,310. During this period, a customer returned a product that cost $983 to repair Required: 0. Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase, for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (1A), or financing activity (FA) b. & c. Prepare the journal entries to record the warranty expense for the period and payment for the actual repair costs. Complete this question by entering your answers in the tabs below. Reg A Req B and Show the effects of these transactions on the financial statements using a horizontal statements model. Use " for increase, -"for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA). Investing activity (LA), or financing activity (FA). (Leave no cells blank - be certain to select "NA" wherever required.) Assets - Liabilities - Equity Revenue - Expenses Net Income Cash Flow Event Estimated warranty expense Actual warranty costs paid Reg Band C >

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