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Multiple Choice Question 145 During 2017, Crane Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 3% within 12 months following sale and 4% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2017 and 2018 are as follows: Actual Warranty Sales Expenditures 2017 s 797000 2018 1006000 $1803000 $12600 34200 $46800 At December 31, 2018, (assuming the accrual method) Crane should report an estimated warranty liability of s 36220. s 34200. s 79410 s0