4 Please fill in exactly the same way as this form

Das Medical introduced a new implant that carries a five-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. Sales were $21 million and actual warranty expenditures were $31,750 for the first year of selling the product. Complete the following T-account to determine the amount (if any) Das should report as a liability at the end of the year. Note: Enter your answers in whole dollars. Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicated that a product recall is probable and is estimated to cost the company $2.4 million. How will this affect the company's income statement and balance sheet this period? Note: Enter your answers in millions rounded to 1 decimal place (i.e., 1,200,000 should be entered as 1.2 )