At the beginning of 2020, John Corporation began offering a two-year warranty on its products. The warranty program was expected to cost John 5% of net sales. Net sales made under warranty in 2020 were $180 million. Fifteen percent of the units sold were returned in 2020 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on John's 2020 income statement is: Group of answer choices $27.0 million. $ 5.3 million. None is correct. $ 7.2 million. $10.6 million.