December 31 Year 1 and Year 2 follow: Required a. Record the journal entries for Year 1 and 2 for (1) the sale of the products and warranties on credit, (2) incurred cash warranty costs, and (3) recognition of warranty revenue. b. What liability would be reported on the balance sheet at the end of Year 1 and Year 2? Note: Round your answers to the nearest whole dollar. Balance Sheet, Dec. 31 b. Current liabilities Year 1 Estimated Litigation Liability Year 2 26,667$60,000