At 31 December 20X8, Barney Company is reviewing its warranty provision. Based on past experience, 75% of sales will have no defects, 20% of sales will require minor repairs, and the remaining 5% of sales will require major repairs. If minor repairs were needed for all products sold through the end of the reporting period that were still under warranty, the estimated repair costs would be $500,000. If major repairs were needed for all products sold through the end of the reporting period that were still under warranty, the estimated repair costs would be $1,100,000. The time value of money is considered immaterial. What is the amount of the provision for warranties at 31 December 20X8? Provide your answer to the nearest US dollar. Do not include symbols, commas, or letters in your response. Solution