Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacturer’s defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 2% of sales. Sales of the sprinklers in 2020 were $2,500,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:
Accrued liability and expense Warranty expense (2% × $2,500,000) ...................... 50,000
Warranty liability ..................................................................................................................... 50,000
Actual expenditures (summary entry) ..........................................................
Warranty liability ............................................................................................... 23,000
Cash (or salaries payable, parts and supplies, etc.) ..................................................... 23,000
In late 2021, the company’s claims experience was evaluated and it was determined that claims were far more than expected—3% of sales rather than 2%.

Required:
1. Assuming sales of the sprinklers in 2021 were $3,600,000 and warranty expenditures in 2021 totaled $88,000, prepare any journal entries related to the warranty.
2. Assuming sales of the sprinklers were discontinued after 2020, prepare any journal entries in 2021 related to the warranty.