Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer's 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 2% of sales. Sales of the sprinklers in 2017 were $3.1 million. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:

General Journal	Debit	Credit
Accrued liability and expense
Warranty expense (2% $3,100,000)	62,000
Estimated warranty liability		62,000
Actual expenditures (summary entry)
Estimated warranty liability	27,000
Cash, wages payable, parts and supplies, etc.		27,000

In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected3% of sales rather than 2%. Required: 1. Assuming sales of the sprinklers in 2018 were $4.2 million and warranty expenditures in 2018 totaled $94,000, prepare any journal entries related to the warranty. 2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entry(s) in 2018 related to the warranty. 1.)

record the accrued liability and expense.

Record the actual expenditures.

2.)

Record the actual expenditures