During its first year of operations, Keene Limited had sales of $76,500. The company offers a 2- year limited warranty on all sales and expects that warranty costs for the first year will average 0.5% of sales with an additional 1.5% in the second year. During the current year, the company spent $1,200 on warranty repairs. 1. Prepare all joumal entries related to the warranty for the current year. How will the warranty liability be reported on the company's year-end balance sheet