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Right Medical introduced a new implant that carries a five-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are

Right Medical introduced a new implant that carries a five-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $19 million and actual warranty expenditures were $39,750 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year?(Enter your answers in whole dollars.)

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