The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $1,170. During this period, a customer returned a product that cost $878 to repair. Required a. Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase or "-" for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave blank for no effect. 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 C Show the effects of these transactions on the financial statements using a horizontal statements model. (Use "+" for increase or "-" for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave blank for no effect. Not all cells require input.) CHAIR COMPANY Horizontal Statements Model Balance Sheet Income Statement Event Statement of Cash Flows Assets Liabilities Stockholders' Equity Revenue Expenses = Net Income Estimated warranty expense Actual warranty costs paid The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $1,170. During this period, a customer returned a product that cost $878 to repair. Required a. Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase or "-" for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or leave blank for no effect. 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. ReqA Req B and C Prepare the journal entries to record the warranty expense for the period and payment for the actual repair costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the warranty expense for the period. Note: Enter debits before credits. Event General Journal Debit Credit b 2 N Record the payment for the actual repairs cost. Note: Enter debits before credits. Event General Journal Debit Credit