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, 1% of sales; second year following 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 Actual Warranty Expenditures 2020 580.000 $1.000 2021 110.000 4,100 2022 120.000 9.000 Sales 3. 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 3%. 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. a. Date Account Name Dr. Cr. 1. 2020 To record sale of warranties 2. 2020 To estimate warranty expense 3. 2020 To record incurred warranty costs 1. 2021 To record sale of warranties 2. 2021 To estimate warranty expense > 3. 2021 To record incurred warranty costs 1. 2022 To record sale of warranties 2. 2022 To estimate warranty expense > 3. 2020 To record incurred warranty costs 2020 2021 2022 Balance Sheet, Dec. 31 Current liabilities Warranty liability b. $ $ $ Account Name Dr. Cr. Date Dec 31, 2022 . C