this question is from chapter current liabilities and payroll.

On January 1, 2019, Crane Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $32 per unit. Sales and warranty figures for the three years ended December 31 are as follows: 2019 2020 2021 Sales (units) 1,900 1,700 1,400 Sales price per unit $170 $160 $145 Units returned for repair under warranty 79 109 Actual warranty costs $3,040 $2,568 $2.040 Calculate the warranty expense for each year and warranty liability at the end of each year. Warranty Expense Warranty Liability 2019 $ 2020 $ 2021