A national retailer reports a warrant liability on its balance sheet equal of 4% of sales customers have up to three calendar months to return defective products sales for february were 20000 sales for march were 300000 sales for april were 400000 and sales for may were 500000 what is the maximum liability the retailer would report on its may 31 balance sheet?

1. 20,000

2. 36,000

3. 48,000

4. 56,000