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During 2020, Harrington Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following sale and 4% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31,2020 and 2021 are as follows: At December 31, 2021, (assuming the accrual method) Harrington should report an estimated warranty liability of a. $0 b. $19,000 c. $25,000 d. $35,000