During July, Audio City sells 400 radios with a one-year warranty for $70 each. Typically, 5 percent of the radios need to be replaced over the warranty period, and each radio costs Audio City $45 to replace. How much should Audio City debit Product Warranty Expense for July? a. $2,800 b. $1,350 c. $ 450 d. $ 900 e. Some other amount