Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacturers defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 3% of sales. Sales of the sprinklers in 2020 were $3,000,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:

Accrued liability and expense
Warranty expense (3% $3,000,000)	90,000
Warranty liability		90,000
Actual expenditures (summary entry)
Warranty liability	41,400
Cash (or salaries payable, parts and supplies, etc.)		41,400

In late 2021, the company's claims experience was evaluated and it was determined that claims were far more than expected4% of sales rather than 3%. Required: 1. Assuming sales of the sprinklers in 2021 were $4,100,000 and warranty expenditures in 2021 totaled $103,000, prepare any journal entries related to the warranty. 2. Assuming sales of the sprinklers were discontinued after 2020, prepare any journal entries in 2021 related to the warranty.

The Commonwealth of Virginia filed suit in October 2019, against Northern Timber Corporation seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the financial statements were issued in 2020, Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $1,800,000 in penalties. The following entry was recorded:

Losslitigation	1,800,000
Liabilitylitigation		1,800,000

Late in 2021, a settlement was reached with state authorities to pay a total of $1,240,000 to cover the cost of violations. Required: 1. Prepare any journal entry(s) related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)