Nixon Medical introduced a new implant that carries a five-year warranty against defects. Based on industry data , warranty costs are expected to approximate 1% of sales. Sales were $15 million and actual warranty expenditures were $20,000 for 2011. What amount should Nixon report as a liability at the end of 2011? 1) $150.000 2) $0 3) $20.000 4) $130.000 5) $170.000 I need only answer, please