Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 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 2020 were $2.5 million. 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 (2%x $2,500,000) 50,000
Estimated warranty liability 50,000
Actual expenditures (summary entry)
Estimated warranty liability 23,000
Cash, wages payable. parts and supplies, etc. 23,000

Required:
In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected—3% of sales rather than 2%.

Required:
a. Assuming sales of the sprinklers in 2021 were and warranty expenditures in 2021 totaled $88,000, prepare any journal entries related to the warranty.
b. Assuming sales of the sprinklers were discontinued after 2020, prepare any journal entries in 2018 related to the warranty.