Chester, 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 Chester, Inc., report on its balance sheet at December 31, 2019? O A $37,700 OB. $42,800 Data Table X C. $80,500 OD. $40,000 Year 2018 $ Sales Warranty Payments 350,000 $ 2,800 800,000 40,000 2019 Print Done