During its first year of operations Piano Limited had sales of $50,000. The company offers a 2-year limited warranty on all sales and expects that warranty costs for the first year will average 1% of sales with an additional 3% in the second year. During the current year, the company spent $1.000 cash on warranty repairs. Required: 1. Prepare all journal entries related to the warranty for the current year (No need to prepare the journal entries of sales revenue and cost of goods sold). 2. How will the warranty liability be reported on the company's year-end balance sheet