(Answered) Question - digital audio works inc warrants its product for

Accounting

Question - Digital Audio Works, Inc. warrants its product for 1 year. The estimated product warranty is 1.5% of sales. Assume tha sales were $975,000 for January. In February, a customer received warranty repairs requiring $5,280. of parts.

a. Determine the warranty liability at January 31, the end of the first month of the current year.

b. What accounts are decreased for the warranty work provided in February?

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