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 $600.000 $9.000 2021 1.000.000 30,000 $1,600.000 530.000 a. At December 31, 2020, what would Ward report as estimated warranty liability on its balance sheet? CE b. Record the journal entries on December 31, 2020 Date Account Name Dr. Dec 31, 2020 . To accrue forward Dec 31, 2020 . To record actual warranty.costs c. At December 31, 2021, what would Ward report as estimated warranty liability on its balance sheet? $ Activate Windows d. Record the journal entries required on December 31, 2021. Date Account Name Dec 31, 2021 Dr. Cr. To accrue for warranty expense Dec 31, 2021 To record actual warranty costs Business Course A Return to course Dec. 31, 2020 ( To accrue for warranty expense Dec. 31, 2020 report as estimated warr $ cember 31, 2021. Cash and Payables Accounts Receivable c. At December Inventory Equipment Copyright Accounts Payable Accrued Compensation d. Record the jo Deferred Revenue Estimated Litigation Liability Date Interest Payable Dec. 31, 2021 Salaries Payable Sales Taxes Payable Warranty Liability Note Payable Dec 31, 2021 Discount on Note Payable Asset Retirement Obligation Sales Revenue Gift Card Breakage Revenue Warranty Revenue Dr. Save Answers se Dec 31, 2020 To accrue for warranty expense Dec. 31, 2020 report as estimated warrar cember 31, 2021. Deferred Revenue Estimated Litigation Liability Interest Payable At December Salaries Payable Sales Taxes Payable Warranty Liability Note Payable Discount on Note Payable . Record the id Asset Retirement Obligation Sales Revenue Date Gift Card Breakage Revenue Dec. 31, 2021 Warranty Revenue Cost of Goods Sold Interest Expense Dec 31, 2021 Legal Expense Salaries Expense Warranty Expense Gain on Litigation Settlement Loss on Litigation Settlement N/A Dr. Cr. 9 Save Answers