Mariano Corporation sells 8,000 units of inventory during the first year of operations for $400 each. Mariano provides a one - year warranty on parts. It is estimated that 5% 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 60 units for a total cost of $2,400. What amount will be reported as Accrued Warranty Payable at the end of the year? A. $4,800 B. $16,000 C. $2,400 D. $13,600