ences aw 11 Knowledge Check 01 Barnes Corporation introduces a new e-book reader 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 10 percent of sales. By the end of the first year of selling the product, total sales are $5 million, and actual warranty expenditures are $100,000. What amount should Barnes report as a liability at the end of the year? Multiple Choice $400,000 $5 million $500,000 < Prev 30 31 of 41 E Score answer >