During 20X4, Bowyer Company 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 31 December 20X4 and 20X5, are as follows 20X4: Sales $300,000; Actual warranty costs $4,500 20X5: Sales $500,000; Actual Warranty costs $15,000 At 31 December 20X5, 

What is Bowyer would report an estimated warranty liability?