On January 1, 2019, Oriole Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $36 per unit. Sales and warranty figures for the three years ended December 31 are as follows:

		2019			2020			2021
Sales (units)		2,500			1,800			700
Sales price per unit		$200			$220			$175
Units returned for repair under warranty		85			105			115
Actual warranty costs		$4,500			$2,990			$1,160

(a)

Calculate the warranty expense for each year and warranty liability at the end of each year.

		Warranty Expense		Warranty Liability
2019		$		$
2020		$		$
2021		$		$