Lindy Appliance begins operations in 2024 and offers a one-year warranty on all products sold. Total appliance sales in 2024 are $1,600,000, and Lindy estimates future warranty costs in 2025 to be 2% of current sales. Actual warranty costs in 2025 are $25,000. Also in 2025, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2025 to be 1.5%.

Required:
1. Record the adjusting entry for estimated warranty costs at the end of 2024.
2. Record the summary entry for actual warranty expenditures in 2025, assuming all costs were paid in cash.
3. Record the adjusting entry for estimated warranty costs at the end of 2025.
4. What is the balance in Warranty Liability at the end of 2024 and 2025?