Question 4 (25 marks) Local Electrical Appliances sells a line of products that carry a three-year warranty against defects. The company recorded the sale of the products and the related warranty liability simultaneously. Based on industry experience, the estimated warranty costs related to dollar sales are the following: current (first) year after sale, 1% of sales; second year after sale, 3%of sales; and third year after sale, 5% of sales. Actual warranty expenditures for the first three-year period were as follows: Year 2018 2019 2020 Cash Sales of Products $80,000 110,000 120,000 Actual Warranty Expenditures $1,000 4,100 9,800 Required: (a) Give entries for the three years 2018, 2019 and 2020 for: (1) the estimated warranty expense, and (2) the actual expenditures. (b) What are the ending balances in the Warranty Liability account at year end of 2018, 2019 and 2020? (21 marks) (4 marks)