In 2023, Blue Spruce Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty 2% Second year of warranty 5% Sales and actual warranty expenditures for 2023 and 2024 are presented below: 2023 2024 Sales $460000 $601000 Actual warranty expenditures 17000 34000 Blue Spruce uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2024? a $23270 b $12020 c $74270 d $51000