Radio Hut Inc. offers a two-year assurance warranty against failure of its products. The estimated liability is 1.5% in the year of sale and 3% in the second year. Sales and actual warranty expense for 2020 and 2021 were: Sales Actual Warranty Costs Incurred During Year 2020 $3,500,000 $110,000 2021 $3.900,000 $195,000 The warranty provision on the December 31, 2020 statement of financial position sheet was O $47,500 O $105,000. O $110.000. $157,500