The Saturn Company offers a two-year manufacturer's warranty (assurance-type warranty included in the cost of their product) that covers all parts, service, and maintenance in the first year. Additionally, they offer a 3-year extended warranty for $3,500. This warranty goes into effect at the end of the initial two-year warranty. During 2017 (their first year of business), Saturn Company sold 5,500 cars at $ 19,000 per car (all cash sales). They estimate they will have warranty costs of 3% of sales. They also sold 400 extended warranties. 2. Please make the journal entries to record the sales and warranties. 3. During 2017, assume Saturn incurred $500,000 of actual warranty expense for sales made in 2017. Please make the correct journal entry. 4. Assume Saturn sells another 5,800 cars ($19,500 per car) in 2018. All cars still come with a two- year manufacturer's warranty. They change their estimate of warranty costs to 2% of sales and they pay out $2,000,000 in warranty costs from 2017 sales and $400,000 from 2018 sales. Please make the appropriate journal entry to adjust the warranty liability. a. Will they need to restate their financial statements because of this change or will they merely need to note it in the notes to the financial statements