Aviation Systems sells its products with a three$-$year manufacturing warranty. The company's sales revenue is $$600,000.$ Based on prior experience, the company estimates that warranty costs are $5\%$ of sales revenue. Actual warranty costs related to these sales were $$5,000$ during the year. How much is the estimated warranty liability reported in the balance sheet this year?

Multiple Choice

$$ $$25,000.$

$$ $$5,000.$

$$ $$30,000.$

$$ $$10,000.$Aviation Systems sells its products with a three$-$year manufacturing warranty. The company's sales revenue is $$600,000.$ Based on prior experience, the company estimates that warranty costs are $5\%$ of sales revenue. Actual warranty costs related to these sales were $$5,000$ during the year. How much is the estimated warranty liability reported in the balance sheet this year?

Multiple Choice

$$ $$25,000.$

$$ $$5,000.$

$$ $$30,000.$

$$ $$10,000.$