OPERATING LIABILITIES $-$ Problem $4(6$ points$)$

RoboticsRUs started the year $2022$ with $$19,500$ of warranties payable. During $2022$ the firm spent $$17,000$ in cash to satisfy warranty claims. RoboticsRUs made $$160,000$ of sales in $2022$ and it estimates that future warranty costs are $10\%$ of sales.

a$.$ Show the financial statement effects of warranty claims satisfaction and of warranty expense recognition in $2022.$

$\backslash$table$[[$Assets$,=,$Liabilities,$+,$Equity,,Sales,$-,$Expenses,$=,$Profit$],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,]]$

b$.$ What is the value of Warranty Payable reported on the $2022$ Balance Sheet?

c$.$ If in $2023$ RoboticsRUs unexpectedly experiences much higher warranty claims filed than the $10\%$ anticipated, what would we expect to see on their $2023$ Income Statement?

a$.2023$ Warranty Expense equal to less than $10\%$ of sales

b$.2023$ Warranty Expense equal to $10\%$ of sales

c$.2023$ Warranty Expense equal to more than $10\%$ of sales