Mariano Corporation sells 11,000 units of inventory during the first year of operations for $400 each. Mariano provides a one - year warranty on parts. It is estimated that 4% of the units will be defective and that repair costs are estimated to be $40 per unit. In the year of sale, warranty contracts are honored on 70 units for a total cost of $2,800. What amount will be reported as Accrued Warranty Payable at the end of the year? A. $2,800 B. $14,800 C. $4,480 D. $17,600