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Sandhill Co.sells remote control airplane engines, which carry a one-year warranty. If a customer brings in a defective engine, he replaces the engine with a

Sandhill Co.sells remote control airplane engines, which carry a one-year warranty. If a customer brings in a defective engine, he replaces the engine with a new one from his inventory. Sandhill estimates that 2% of sales are defective. As of January 1, the Warranty Liability had a credit balance of $400.
Sandhill provided the following sales and warranty cost information for his year end of December 31.
Sales price per engine $130
Total sales 1,010 units
Actual warranty costs $1,215
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(a)
Calculate the estimated warranty expense for the year.
Estimated warranty expense $

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