Super Tech Was Organized to Sell a Single Product for $3,600

Super Tech was organized to sell a single product for $3,600 per unit, including a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $300 per unit. During the first month of operations, total sales were $1,152,000. Nine units sold in the first month were found defective and repaired that month.
The accrued liability for product warranties at month-end should be:

A) $4,800
B) $2,100
C) $2,700
D) $6,900