QUESTION 6: ACCOUNTING CHANGES (6 marks) 2 You have been asked by a client to review the records of Ty Corp., a small manufacturer that follows ASPE. Your client is interested in buying the business, and arrangements were made for you to review the accounting records. The company has never been audited. Ty Corp. Just completed its fiscal year ending March 31, 2020 and its accounting records for 2020 are still open. Your examination reveals the following: All machines are sold subject to a five-year standard warranty. It is estimated that total warranty costs will amount to 1% of sales. The company charged the warranty expense account for the actual warranty costs incurred (cash-basis). Sales per books and actual warranty costs were as follows: Year ended 2019 2020 $ Sales 980,000 $ 1,000,000 Actual costs 1,800 3,900 QUIRED: Prepare all journal entries that you would give the bookkeeper of Ty Corp. to correct any accounting errors. Ignore any income tax effec ume the books have not yet been closed for the fiscal year en March 31, 2020. If no entry is needed, select N/A from the first line. List debi before credits Date Account Title Debit Credit /19 period /20 period A Cover Sheet Q1 Q2 Q3 24 25 26 + Automatic Workbook Statistics MacBook Pro