On January 1,2012 the beginning balance in the Warranties Payable account was $75,000. Cash sales for 2012 totaled $300,000 and credit sales totaled $900,000. The company estimates warranty costs at 7% of sales. During the year, $65,000 was paid to settle warranty claims. As a result of these transactions, what is the amount of warranties payable that is reported on the 2012 year end balance sheet