Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a two-year warranty against defects, which is included in the selling price of the product. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are: Actual Warranty Sales Expenditures 2020 $360,000 $5.400 2021 600,000 5960,000 523,400 18,000 a At December 31, 2020, what would Ward report as estimated warranty liability on its balance sheet? $ 7,200 X Cr. 0 b. Record the journal entries on December 31, 2020. Date Account Name Dr. Dec 31, 2020 Warranty Expense 7.200 x Warranty Liability . 07 To accrue for warranty expense Dec 31, 2020 Warranty Liability 5.400 Cash and Payables e 0 To record actual warranty costs 7.200 x 5.400 c. At December 31, 2021, what would Ward report as estimated warranty liability on its balance sheet? $ 26,400 X d. Record the journal entries required on December 31, 2021. a. At December 31, 2020, what would Ward report as estimated warranty liability on its balance sheet? $ 7,200 X Cr. 0 b. Record the journal entries on December 31, 2020. Date Account Name Dr. Dec 31, 2020 Warranty Expense 7,200 x Warranty Liability 07 To accrue for warranty expense Dec. 31, 2020 Warranty Liability 5,400 Cash and Payables 0 To record actual warranty costs 7,200 X 0 - 5,400 c. At December 31, 2021, what would Ward report as estimated warranty liability on its balance sheet? $ 26,400 X d. Record the journal entries required on December 31, 2021. Date Cr. Dr. 26,400 X 0 0 26,400 x Account Name Dec 31, 2021 Warranty Expense Warranty Liability To accrue for warranty expense Dec 31, 2021 Warranty Liability Cash and Payables To record actual warranty costs 0 18,000 0 18,000