Aaron Inc. manufactures and sells computer monitors with a three-year warranty. It has a calendar year-end. Warranty costs are expected to average 9% of sales during the warranty period. The table below shows the sales and actual warranty payments during the first two years of operations. Based on these facts, what amount of warranty liability should Aaron Inc. report on its balance sheet as of December 3 20X2? A. $78,400 B. $38,600 C. $32,000 D. $117,000 Sales and Warranty Payments