Help Save & Exit Submit 5 Woodmier Lawn defects. s introduced a new line of commercial sprinklers in 201 7 that carry a one-year warranty against manufacturers Because this was the first product for which the company offered a warranty, trade publications were consulted to determine ers in the industry. Based on that experience, warranty costs were expected to approximate 1% of sales. Sales of sprinklers in 2017 were $2.6 million. 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 (18 x $2,600,000) 26,000 Estimated warranty 1iability Actual expenditures (summary entry) 26,000 ty liability 10,000 Cash, wages payable, parts and supplies, ete. 10,000 In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected sales rather than 1%. 2% of Required 1. Assuming sales of the sprinklers in 2018 were $3.7 million and warranty expenditures in 2018 totaled $89,000, prepare any journal entries related to the warranty. 2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entryls) in 2018 related to the warranty Complete this question by entering your answers in the tabs below Next 5 of 8