Brief Exercise 8-9 Calculate warranty liability (LO8-5) Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 2% of sales. By the end of the first year of selling the product, total sales are $30.9 million, and actual warranty expenditures are $290,000. What amount (if any) should Sony report as a liability at the end of the year? (Enter your answer in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)