Amazon sells merchandise totaling $300,000 in 2020 that includes an assurance warranty. Warranty costs are estimated to be 1.5% of sales. The company also sold $13,000 of extended warranty that provides two years of protection. The company incurred actual costs of $1,960 in 2020 related to the warranties. Prepare a T-account for warranty liabilities showing the above activity. The balance @ 1/1/20 is $4,725 (a credit).