In 2025, Wildhorse 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, 2025 and 2026 are as follows: Actual Warranty Expenditures Sales 2025 $798000 $12900 2026 1002000 35800 $1800000 $48700 At December 31, 2026, (assuming the accrual method) Wildhorse should report an estimated warranty liability of O $0. O $35800. O $59300. O $24320.