Brigham Company sells an electric timer that carries a 60 -day unconditional warranty against product fallure. Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty period, three percent of the units sold will require repair at an average cost of $123 per unit. The following data reflect Brigham's recent experience: Calculate the estimated liability for product warranties at December 31. 5 (Assume that warranty costs of known fallures have already been reflected in the records.)