On October 1, Year 1, Gail Co. entered into a contract with a customer to sell 100 machines for $60 each. The customer obtains control of the machines at contract inception. Gails cost of each machine is $35. Gail allows the customer to return any unused machine within 1 year from the sale date and receive a full refund. Gail uses the expected value method to estimate the variable consideration. Based on Gails experience and other relevant factors, it reasonably estimates that a total of 15 machines (9 machines in Year 1 and 6 machines in Year 2) will be returned. Gail estimates that (1) the machines are expected to be returned in salable condition and (2) the costs of recovering the machines will be immaterial. During Year 1, 8 machines were returned. At the end of Year 1, Gail continues to estimate that a total of 15 machines will be returned within 1 year from the sale date.

Question What amount of refund liability, if any, will be reported in Gails December 31, Year 1, balance sheet?