Crenshaw Corporation sells widgets. Each widget carries a multi-year warranty. Crenshaw estimates the cost of warranty work to be 3% of current sales. 20X4 sales was $5 million and $30,000 was spent on warranty work during 20X4. The balance in Estimated Warranty Liability at 12-31-X3 was $70,000. What is the balance in Estimated Warranty Liability at 12-31-X4 and the balance in Warranty Expense for 20X4, respectively? a. $150,000; $30,000 b. $190,000; $30,000 c. $190,000; $150,000 d. $120,000; $150,000 e. None of the above

I know the answer is C)190,000 ; 150,000 but i just need a step by step explanation on how to get to the answer. thanks in advance!