Exercise 13-24 Warranty expense; change in estimate (LO13-5, 13-6) Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer's defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 2% of sales. Sales of the sprinklers in 2017 were $3.5 million. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: Debit Credit cred General Journal Accrued liability and expense Warranty expense (2% X $3,500,000 Estimated warranty liability 70,000 70,000 Actual expenditures (summary entry) Estimated warranty liability Cash, wages payable, parts and supplies, etc. 29,000 29,000 In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected3% of sales rather than 2%. Required: 1. Assuming sales of the sprinklers in 2018 were $4.6 million and warranty expenditures in 2018 totaled $98,000, prepare any journal entries related to the warranty. 2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entry(s) in 2018 related to the warranty. Journal entry worksheet