In 20X1, Stevens Corp. began a new product line of wearable technology that carries a 24- month warranty against manufacturer defects. Based on industry experience, Stevens expects warranty costs to be an amount equal to approximately 9% of total sales dollars. During 20X1, new sales of this technology totaled $3,000,000. The costs incurred to satisfy warranty claims in 20X1 was $95,000 Required: Answer the following two questions. Question #1 : What should Stevens report as the "Warranty Expense" balance on its 20X1 income statement? Answer: Question #2: What should Stevens report as the "Warranty Liability" balance on its balance sheet at 12/31/X1