Question: Tower Electronics sold $480,000 of consumer electronics during June under a nine-month warranty. The cost to repair defects under the warranty is estimated at 5%

Tower Electronics sold $480,000 of consumer electronics during June under a nine-month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price.
On August 16, a customer was given $90 cash under terms of the warranty.
Provide the journal entry for
(a) The estimated warranty expense on June 30 and
(b) The August 16 cash payment.

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