Question 7 (1 point) During 2020 Lockport Appliances sold 400 appliances worth $2,000,000. Each appliance comes with a one-year assurance-type warranty, which Lockport estimates will cost $75 each. During the year Lockport spent $12,500 on warranty costs for the appliances sold in 2020. At the end of the 2020 the warranty provision and the warranty expense related to these sales would be closest to Warranty Provision Warranty Expense 1) $30,000 $30,000 2) $17,500 $12,500 3) $12,500 $12,500 4) $17,500 $30,000