In 2018, Cap City Inc. introduced a new line of televisions that carry a one-year warranty against manufacturer's defects. Based on past experience with similar products, warranty costs are expected to be approximately 4% of sales during the year of the warranty. Net Sales were $6,000,000 (not including sales tax) for 2018 and the sale tax rate is 5%. 1. Assuming that all sales are on credit, please record the sales and sales tax entry for Cap city for 2018. 2. Please record the adjusting entry to estimate the estimated warranty expense /liability at the end of 2018. 3. What amount should Cap City report as liabilities from this transaction at December 31, 2018 (both sales tax and warranty)