XYZ Jetski Corp. has sold motorized watercraft for a number of years. XYZ includes a three-year warranty on each watercraft it sells. Management estimates that the cost of providing the warranty coverage is 1% of sales in the first year and 2% of sales in each of years two and three. Other facts follow. (Click the icon to view the facts.) Required Prepare summary journal entries to record warranty expense and warranty claims in 2021 and 2022. b. Determine the provision for warranty payable that XYZ will report as a liability on December 31, 2022. a. Facts .... Requirement a. Prepare summary journal entries to record warranty expense and warranty claims in 2021 and 2022. (Record debits first, then credits. Explanations are not required.) Begin by preparing the entry to accrue for the 2021 warranty expense. Date Accounts Debit Credit XYZ reported a $270,000 provision for warranty payable on its balance sheet at December 31, 2020 XYZ's sales for 2021 totalled $5,200,000 spread evenly throughout the year. The cost to XYZ of meeting its warranty claims in 2021 was $260,000: $162,500 for parts and $97,500 for labour. XYZ's sales for 2022 totalled $6,000,000 spread evenly throughout the year. The cost to XYZ of meeting its warranty claims in 2022 was $340,000: $204,000 for parts and $136,000 for labour. Based on recent claims history, XYZ revises its 2022 warranty provision to 7% of sales. 2021 The cost to XYZ of meeting its warranty claims in 2021 was $260,000: S162,500 for parts and $97,500 for labour. Prepare the entry to recognize the warranty service provided in 2021. Date Accounts Debit Credit Print Done 2021