Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 3,700 units. It is estimated that warranty repairs will average $12 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. On the current year's income statement, Hall should show warranty expense of

a.$13,320

b.$44,400

c.$0

d.$31,080