Novum Medical Software, a sole proprietorship, is sold with a 1 year replacement warranty which is recognized by accruing 10% of the sale price of the product. The warranty accrual is the sole curren

Novum Medical Software, a sole proprietorship, is sold with a 1 year replacement warranty which is recognized by accruing 10% of the sale price of the product. The warranty accrual is the sole current liability of the company. At the opening of the year, there was a balance of $100,000 in the warranty accrual. During the year claims of $102,000 were made as were sales of $1,200,000.

Please provide the following:

1. A workpaper that displays the account changes leading to ending balances for the warranty accrual and warranty expense.

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