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During 2006, Blass Co  At December 31,2007, Blass should report an estimated warranty liability of \text { At December } 31,2007 \text {, Blass should report an estimated warranty liability of }

question 22

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During 2006, Blass 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, 2006 and 2007 are as follows: Actual Warranty  SalesExpenditures 2006$800,000$12,00020071,000,00030,000$1,800,000$42,000\begin{array}{rrr}&&\text {Actual Warranty }\\&\text { Sales}&\text {Expenditures }\\2006 & \$ 800,000 & \$ 12,000 \\2007 & 1,000,000 & 30,000\\&\$1,800,000&\$42,000\\\end{array}
 At December 31,2007, Blass should report an estimated warranty liability of \text { At December } 31,2007 \text {, Blass should report an estimated warranty liability of }

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