Arnold, Inc., manufactures and sells computer monitors with a three-year warranty. Warranty costs are expected to average 7% of sales during the warranty period. The following table shows the sales and actual warranty payments during the first two years of operations: (Click the icon to view the sales and actual warranty payments during the first two years of operations.) Based on these facts, what amount of warranty liability should Arnold, Inc., report on its balance sheet at December 31, 2019? O A. $75.250 Data Table O B. $31,750 O C. $43,500 O D. $41,250 Warranty Payments Year Sales 2018 250,000 $ 2,250 2019 825,000 41,250 Print Done