Current Attempt in Progress Sunland.com sold 5700 units of its product for $400 each during the year ending December 31, 2021. The selling price includes a one-year warranty on parts. It is expected that 4% of the units will be defective and that repair costs will average $60 per unit. In the year of sale, warranty contracts are honored on 120 units for a total cost of $7200. What amount should be reported on Sunland.com's balance sheet as Warranty Liability on December 31, 2021? $6480 $13680 O It cannot be determined O $7200