During 2020, Swifty Corporation introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 3% within 12 months following sale and 4% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021 are as follows: Sales Actual Warranty Expenditures 2020 $ 791000 $12500= $1790000 2021 999000 35500 = $48000 At December 31, 2021, (assuming the accrual method) Swifty should report an estimated warranty liability of $77300. $34430. $0. $35500.