Exercise $13-15($Static$)$ Warranties; financial statement effects $[$LO$13-5,13-6]$

Cupola Awning Corporation introduced a new line of commercial awnings in $2024$ that carry a two$-$year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to app $3\%$ of sales. Sales and actual warranty expenditures for the first year of selling the product were:

$\backslash$table$[[$Sales$,\backslash$table$[[$Actual Warranty$],[$Expenditures$]]],[$$$5,000,000,$$$37,500$