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During the current year, a company sold 1 0 , 0 0 0 units of a product that was covered by a two - year

During the current year, a company sold10,000units
of a product that was covered by a two-year assurance warranty
against defects. Experience indicates that approximately4% of
the units sold will require warranty repairs, at an average cost of
$70per unit. The actual costs incurred during the year for
repairs under the warranty totalled $7,100. What amount of
liability (if any) should be reported on the companys statement of
financial position at the end of the current year?

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