Question 7 Not yet answered Marked out of 2.00 Flag question In 2021 Bass Co. started offering a two-year warranty on its products. Management estimates the following repairs costs will be incurred: In the first year of the warranty - 2% of sales In the second year of the warranty - 3% of sales Sales and actual repair costs incurred for 2021 and 2022 were: 2021 2022 Sales revenue $1,000,000 $1,500,000 Actual warranty repair costs incurred $30,000 $40,000 What is the amount in the Warranty Liability account on December 31, 2022? Select one: O a $100,000 Ob. $70,000 Oc. $55,000 d. $35,000