Melchor Inc. offers a two-year warranty against failure of its products. The estimated liability is 2% in the year of sale and 5% in the second year. Sales and actual warranty expense for 2007 and 2008 were: Sales Actual Warranty Costs Incurred During Year 2007 $2,300,000 $ 90,000 2008 $2,500,000 $225,000 13. The warranty payable on the December 31, 2007 balance sheet was: a. $46,000 b. $71,000 c. $90,000 d. $161,000 Answer D Please explain with calclulation steps