Required information Big Top Electronics Inc. offers a two-year warranty on its products. The estimated liability is 4% of sales in the year of sale and 6% in the second year. Sales for 20x0 and 20x1 were: $2,500,000 and $2,800,000, respectively. They incurred no warranty costs in 20x0 but in 20x1 they spent $175,000 on repairs related to the warranties from 20x0 and 20X1. Big Top's warranty liability as at the end of the 20x1 year is