In 2020, Hydrogen Corp $2 \%$ Second Year of War Ranty

In 2020, Hydrogen Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of war ranty & $2 \%$
Second year of war ranty $5 \%$
Sales and actual war ranty expenditures for 2020 and 2021 are presented below:

$\begin{array}{ll}\text{} & \quad \quad \quad \quad \quad \underline{\text{2020 }} \quad \quad \quad \quad \quad \underline{\text{ 2021 }} & \\\text{Sales } & \quad \quad \quad \quad \quad\text{\$450,000 \quad \quad \quad 600,000} \\\text{Actual warranty expenditures } & \quad \quad \quad \quad \quad \text{\ 15,000 \quad \quad \quad 30,000} \\ \end{array}$

Hydrogen uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2021?

A) $ 73,500
B) $ 43,500
C) $ 28,500
D) $ 12,000