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In 2021, Cap City Inc. introduced a new line of televisions that carry a two-year warranty against manufacturer's defects. Based on past experience with similar products, warranty costs are expected to be approximately 1% of sales during the first year of the 01:42:44 warranty and approximately an additional 3% of sales during the second year of the warranty. Sales were $6,000,000 for the first year of the product's life and actual payments for warranty expenditures were $29,000. Assume that all sales are on credit. Required: 1. Prepare journal entries to summarize the sales and any aspects of the warranty for 2021. 2. What amount should Cap City report as a liability at December 31, 2021? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to summarize the sales and any aspects of the warranty for 2021. (If select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for Actual expenditures paid. Note: Enter debits before credits. Transaction General Journal Debit Credit 3