problem a-is (AICPA Adapted) In 2020, Dubious Company began selling now line of products that carry a two-year warranty against defects. Based upon past experience with other products, the entity estimated warranty coats as a percentage of pew sales. First year of w arranty 2% Second year of warranty Sales Actual warranty met 1. 2020 2021 6,000.000 7,(XX),1100 101000 300.000 What is the warranty expense for 2020? a. 350,000 b. 100,000 e. 175,000 d. 150,000 2. What is the warranty liability on December 31. 2020? a. 150,000 b. 250.000 c. 125,000 d. 0 3. Whatis the warranty expenses fur 2021? a. .300,000 b. 350.000 c. 490,000 d. 140,000 What is the warranty liability on December 31. 2021? a. 390,000 b. 440,000 c. 490,000 d. 840,000