A+ Appliances, Inc. is in its first year of operations. The company sells household appliances with a warranty which covers manufacturing defects. Since A+ Appliances, Inc. does not have historical sales and defect information, they estimate that if every appliance sold needed repairs, the range of costs would be between $500,000 and $750,000. How much warranty expense should A+ Appliances, Inc. record in 20X1?

Ps. 625,000 is NOT a correct answer.