Recording and Reporting Warranties Macy Furniture sells a line of products that carry a three-year warranty against defects at no extra charge. Based on industry experience, the estimated warranty costs are as follows: first year following the year of sale, 19% of sales; second year Tollowing the year of sale, 3% of sales and third year following the year of sale, 5% of sales Sales and actual warranty expenditures for the first three year period were: Cash Actuel Warranty Sales Expenditures 2020 Sh4,00 $401 2021 88.000 3,280 2022 96,000 7,840 a. Provide entries for the three years for (1) credit sales (2) estimated warranty expense, and (3) actual expenditures b. What amount should be reported as a liability on the balance sheet at the end of each year? C. Assume instead that at the end of 2022, the company changed its estimate of the second year after sale to 2% of sales rather than 39. Provide the entry to record the adjustment to the warranty liability assuming all entries described above were recorded as planned). Note: Round your answers to the nearest whole dollar Account Name Dr. Cr. Date 1.2020 + 0 To reror sale of warranties 2 2020 0 To estimate Warrantxoense 3 2020 0 0 To win Warranty cul + 1. 2021 0 0 0 D 0 To repor sale of warranties 2 2021 0 0 To stimata warranty canense 3 2020 0 0 o 0 D To record incurranty costs 1. 2022 2020 2021 2022 Balance Sheet, Dec. 31 Current liabilities b. Warranty liability $ 0 $ 0 $ 0 Date Account Name Dr. Cr. Dec. 31, 2022 o o o o C. Check