At 30 June 2018, Ting Sun Electronics adjusted its Provision for Warranties so that it would be equal to 5% of sales for the year ended on that date. Sales for the year ended 30 June 2018 were $1600000 and the Provision for Warranties before the adjustment was $47000. On 6 October 2018, a successful claim for warranty on faulty goods to the cost of $900 was made on Ting Sun Electronics.

Required

A. Prepare the general journal entry at 30 June 2018 to adjust the Provision for Warranties to the required level.

B. Record the payment of the warranty claim on 6 October 2018 in general journal format.