4. Teal Mountain provides one-year warranties on the laptops it sells. During the year, Teal Mountain's laptop sales totaled $116,000,000. Historically, Teal Mountain's warranty liability has been one percent of total sales. Teal Mountain began the year with a warranty liability balance of $930,000. Warranty expenditures during the year were $900,000 for computers sold in prior years and $278,000 for computers sold during the year. These expenditures were recorded as credits to cash and debits to the warranty liability account. Any remaining warranty liability is expected to relate to computers sold during the current year. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)