View Policies Current Attempt in Progress During 2019, Sheridan Company introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 1% of sales in the year of sale, 2% in the year after sale, and 3% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2019 $1393000 $24000 2020 1000000 38000 2021 1393000 88000 $3786000 $150000 What amount should Sheridan report as a liability at December 31, 2021? O $13930 O $77160 O $0 $36000 Save for Later Attempts: 0 of 1 used Submit