Response to the following problem:
During a recent year, Motorola, Inc., had sales of $31,323,000,000. An analysis of Motorola's product warranty payable account for the year was as follows:
Product warranty payable, January 1 $ 359,000,000
Product warranty expense 648,000,000
Warranty claims paid* (507,000,000)
Product warranty payable, December 31 $ 500,000,000
* The amount reported for Warranty Claims Paid includes other adjustments.
a. Determine the product warranty expense as a percent of sales. Round to two decimal places.
b. Record the adjusting entry for the product warranty expense for the year.