Teal Company must make computations and adjusting entries for the following independent situations at December 31, 2021. 1. Its line of amplifiers carries a 3-year warranty against defects. On the basis of past experience the estimated warranty costs related to dollar sales are first year after sale-2% of sales revenue; second year after sale-3% of sales revenue; and third year after sale-5% of sales revenue. Sales and actual warranty expenditures for the first 3 years of business were: Sales Revenue Warranty Expenditures 2019 $839,200 $ 6,680 2020 1,098,000 16,630 2021 1,268,000 68,030