On April 1, 2021, Carter Company began offering a new product for sale under a one-year warranty. Of the 5,000 units in inventory on April 1, 2021, 3,000 had been sold by June 30,2021 . Based on its experience with similar products, the entity estimated that the average warranty cost per unit sold would be P160. Actual warranty costs incurred from April 1 through June 30,2021 were 7140.000. On June 30,2021 , the amount to be reported as warranty liability is: a. 180,000 c. 340,000 b. 240,000 d. $660,000