Clean All Inc. sells washing machines with a 3year assurance type warranty. In the past They found that in the year after the sale warranty costs have been 3% of sales in the second year 5%, and the third 7% of sales. The following data are also available:

C. Clean-All, Inc. sells washing machines with a 3-year assurance type warranty. In the past, Clean-All has found that in the year after the sale, warranty costs have been 3% of sales; in the second year after sale, 5% of sales; and in the third year after sale, 7% of sales, the following data are also available: Year Warranty Expenditures 82,000 Sales 2018 2019 650,000 00,000 85,000 Instructions: 1. Prepare the journal entries for the preceding transactions for 2018-2019. Closing entries are not required. 2. Determine the amount Clean-All will report as liability on December 31, 2019, assuming the liability had a balance of $101,200 on December 31, 2016