Durinf 2017, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 7% in the second year acter sale. Sales and actual warranty expenditures for the first three-year period were as follows:

Sales Actual WarrantyExpenditures

2017 $100,000 $3000

2018 $1,700,000 $21,000

2019 $2,000,000 $100,000

________________________________

$3,800,000. $124,000

What amount should Blevert report as a liability at Dec 31, 2018?

answer: $192,000

please show explanation and calculation!