Clean-All Inc. sells washing machines with a 2-year warranty. Clean-All estimates that total warranty costs are 3% of sales. In Year 2, Clean-All recorded total sales of washing machines of $700,000. The balance in the Estimated Liability for Warranties account was $38,200 on December 31, Year 1, and $25,600 on December 31, Year 2.

What must have been the actual cost of repairs (covered under warranty) for Year 2?

Select one:

a. $44,300

b. $ 6,900

c. $33,600

d. $32,900