On January 1, 2019, the beginning balance in the Warranties Liability account was $95,000. Cash sales for 2019 totaled $800,000 and credit sales totaled $500,000. The company estimates warranty costs at 5% of sales. During the year, $85,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranty liability that is reported on the company's 2019 year-end balance sheet? Answer: $