* Question 2 Klean All manufactures and sells washing machines with a 2 year warranty, Warranty costs are expected to atverage 8% of sales and are expected to be incurred as follows: First year of warranty 2% Second year of warranty 6% The following table shows the sales and actual warranty costs incurred during the first two years of operations Year Sales 2019 $500,000 2020 700,000 Warranty costs incurred $ 4.000 34,500 The amount of warranty liability that should be reported on the balance sheet at December 31, 2020 is