Exercise 20-14 (Algo) Warranty expense (LO20-4] Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 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 2020 were $3,400,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: Accrued liability and expense Warranty expense (2% * $3,400,000) Warranty liability 68,000 68,000 Actual expenditures (summary entry) Warranty liability Cash (or salaries payable, parts and supplies, etc.) 31,280 31,280 Required: 1. Assuming sales of the sprinklers in 2021 were $4,500,000 and warranty expenditures in 2021 totaled $115,000, prepare any journal entries related to the warranty 2. Assuming sales of the sprinklers were discontinued after 2020, prepare any journal entries in 2021 related to the warranty