5 points Save Answer Aquarian Aquatics offers a 2-year warranty on its scuba gear. Aquarian estimates its warranty expense at 5% of annual net sales. The preceding year was the company's first year of operations. Net sales for the current year totaled $2,250,000, and warranty payments were $48,000. For the year just ended, Aquarian reported a warranty liability of $140,000. Accordingly, the beginning balance in the liability account should have been A $75,500 B. $112,500 C. $188,000 D. $27,500