The following information is related to Sunglow Solar Ltd:

• Sales for the year ended 30 June 2019 was $1,200,000
• Provision for warranties before adjustment was $36,000

At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date.

On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd.

Required:

1. Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. (3 marks)
2. Record the payment of the warranty claim on 16 September 2019 in general journal format. (2 marks)