A company offers warranties on products for two vears past the purchase date. The company estimates that 4% of sales dollars will be the cost of Warranty work needed to satisfy its promises. If the company sells $2.000 , 000 of merchandise this year and has an outstanding credit balance in Estimated Warranty Llability of $25.000 at the end of the vear, prepare the adjusting journal entry for warranty expense this year. Aso. prepare the joumaf entry to recognize the $60000 of warranty work that was done during the year. Assurne all work involved parts, but no labor was fecessary