During Year 1, Ward Company introduced a new product carrying a two-year warranty against defects, which is included in the selling price of the product. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31 of Year 1 and Year 2 follow. Sales Year $960.000 Year: 1.600.000 $1.600.000 Dec 31 Year T Actual Warranty Expenditures Required a. Record the entries in Year 1 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end. Date Account Name Dr. Cr. Dec 31 Year 1 STCW $14400 48.000 $39.000 Dec 31 Year 2 Totalwarranty CRISE To accufar warranty b. At December 31 Year 1, what would Ward report as estimated warranty liability on its balance sheet? s c. Record the entries in Year 2 to (1) record actual cash warranty costs and (2) accrue for warranties at year-end. Date Account Name Cr. Dec 31 Year To record actual warranty costs V V To assove forwarrac d. At December 31 Year 2, what would Ward report as estimated warranty liability on its balance sheet? s