urgent please

QUESTION 3: ACCOUNTING CHANGES (6 marks) WC You have been asked by a client to review the records of Skya Inc., a small manufacturer that follows ASPE. Your client is interested in buying the business, and arrangements were made for you to review the accounting records. The company has never been audited. Skya Inc. Just completed its fiscal year ending December 31, 2020 and its accounting records for 2020 are still open. Your examination reveals the following: All machines are sold subject to a four-year standard warranty. It is estimated that total warranty costs will amount to 3% of sales. The company charged the warranty expense account for the actual warranty costs incurred (cash-basis). Sales per books and actual warranty costs were as follows: Year ended Actual costs Sales charged to warranty expense 1,000,000 $ 9,750 1.257.500 12.261 $ 2019 2020 REQUIRED: Prepare all journal entries that you would give the bookkeeper of Skya Inc. to correct any accounting errors or any income tax effects. Assume the books have not yet been closed for the fiscal year ended December 31, 2020. no entry is needed, select N/A from the first in List debits listed before credits Date Account Title 1/Jan/20 Prior period Debit Credit 31/Dec/20 Current period