The following additional information is provided for the month ending 31st of August 2021 E Bike City posts adjustment entries on a monthly basis.

1. E Bike City sells their products with a 1-year labour and parts warranty. E Bike City has a provision for warranty account. Erica, the owner of E Bike City would like to increase the business provision for warranty accounts balance as at 31st August by $1,500.00.

2. Erica, the owner of E Bike City would like to increase allowance for doubtful debts by $160.00 as at 31st August

Required:

Based on the information given above, you are required to record the appropriate adjustment entries using the accurate double entry system of accounting