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 $1,380. During this period, a customer returned a product that cost $1,035 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. Complete this question by entering your answers in the tabs below. Req A Req B and C Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase, "-" for decrease, and NA for no affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), 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 ( Req A Req B and C > Journal entry worksheet Record the warranty expense for the period. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet