Power Company sells merchandise with a one year warranty. In 2012, sales consisted of 1, 600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2012 and 70% in 2013. In the 2012 income statement, Power should show warranty expense of $4, 800 $11, 200 $16,000 $0