Habek Hardware Inc. provides a product warranty for defects on two major lines of items sold since the beginning of 2019. Line A carries a two-year warranty for all labor and service (but not parts). The company contracts the service for the warranty (both parts and labor). The fee is $60 per unit payable at the date of sale. Line B carries a three-year warranty for parts and labor on service. Habek purchases the parts needed under the warranty and has service personnel who perform the work and are paid by the job. On the basis of experience, it is estimated that for Line B, the three-year warranty costs are 3% of sales for parts and 7% for labor and overhead. Additional data follow. Required a. Provide entries for annual sales and expenses for 2019 and 2020 separately by product line. Assume that all sales were for cash. b. Determine the year-end estimated warranty liability and the year's warranty expense for 2019 and 2020