A company provides a $120$ day parts and labor warranty on all merchandise it sells. The company estimates the warranty expense for the current period to be $$2650.$ During the period, a customer returned a product that cost $$1830$ to repair.

a$.$ Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use $"+"$ for increase, $""$ for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).($Leave no cells blank $-$ be certain to select $"$NA$"$ wherever required.$)$

b$.$ Prepare the journal entry to record the warranty expense for the period. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

c$.$ Prepare the journal entry to record payment for the actual repair costs. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$