Accounting for uncollectible accounts and warranties. Hurley Corporation sells household appliances (for example, refrigerators, and dishwashers) to customers on account. The firm also provides warranty services on products sold. Hurley estimates that 2% of sales will ultimately become uncollectible and that warranty costs will equal 6% of sales. Actual uncollectible accounts and warranty expenditures generally occur within three years of the time of sale. Amounts in selected accounts appear next:

(a) Prepare an analysis that explains the change in the allowance for Uncollectible accounts account during 2009 and 2010.
(b) Prepare an analysis that explains the changes in the Warranty Liability account during 2009 and2010

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December 31: 2009 2010 2008 Accounts Receivable, Net of Allowance for Uncollectible Accounts of $245 on December 31, 2010, $405 on December 31, 2009, and $355 on December 31, 2008... Estimated Warranty Liability ..... $6,470 1,720 $7,750 1,535 $7,000 1,325 For the Year: Sales Revenue ... 2010 2009 $16,000 $18,000