SS ACTIVITY. Week 2 Saved Help Save & Exit Submit 45.18 In 2021, ABC Corp. introduced a new product that carries a two-year warranty against manufacturer's defects. Based on past experience with similar products, future warranty costs are expected to total approximately 6% of sales. During 2021, sales were $8,000,000. Assume that all sales were on credit Required: 1. Prepare journal entries to summarize the sales and any warranty liability recorded during 2021. 2. Calculate the balance of the warranty liability as of December 31, 2021, assuming actual warranty expenditures of $240,000 3. Suppose that actual warranty expenditures for 2021 were $160,000 (instead of $240,000). Holding all other factors constant, calculate the balance of the warranty liability as of December 31, 2021 under this alternative scenario. Complete this question by entering your answers in the tabs below. inces Required 1 Required 2 Required 3 Prepare journal entries to summarize the sales and any warranty liability recorded during 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list