Ritz Co. sold a Television (that costs $8,000 ) for $10,000 cash with a two-year parts warranty to a customer on September 1 of Year 1 . Ritz Co. expects warranty costs to be 4% of dollar sales. On October 5 of same year, the Television requires on-site repairs that are completed the same day. The repairs cost $250 for materials taken from the Repair Parts Inventory. These are the only repairs required for this Television. How much is the estimated warranty liability for this Television as of December 31 of Year 1 ? $250 $400 $320 $150