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 $1,390. During this period, a customer returned a product that cost $1,043 to repair. Required: a. 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 (IA), 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.