During 2017, Eaton Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following the sale and 4% in the second 12 months following the sale. Sales and actual warranty expenditures for the years ended December 31, 2017 and 2018 are as follows: Actual Warranty Sales Expenditures 2017 $ 800.000 $12,000 2018 1,000,000 35,000 $ 1.800,000 $47,000 Al December 31, 2018. (assuming the accrual method) Eaton should report an estimated warranty liability of 50 525.000 $35.000 $61,000