Patriot Fanbase, Inc. sells those fun foam fingers fans use at their football games. At the beginning of 2024, Patriot started offering a two-year warranty on its products (those fingers can break you know!). The warranty program was expected to cost Patriot Fanbase 6% of net sales.

Net sales made under warranty in 2024 were $185 million. Fifteen percent of the units sold were returned in 2024 and repaired or replaced at a cost of $4.70 million.

The amount of warranty expense on Patriot Fanbases 2024 income statement is: