In 2017, Sunland, Inc. began operations and sold 1300 units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $70. Sunland estimates that 180 units of the current years sales will require repairs. During 2017, 60 contracts were honored at a total cost of $4200. What is the balance in the Warranty Liability account at the end of 2017?

Question 4 In 2017, Sunland, Inc. began operations and sold 1300 units of a product that has a one-year warranty on parts. The average cost of honoring one warranty contract is $70. Sunland estimates that 180 units of the current year's sales will require repairs. During 2017, 60 contracts were honored at a total cost of $4200. What is the balance in the Warranty Liability account at the end of 2017? credit of $8400. O credit of $12600. debit of $4200. O debit of $12600