During 2013, Gardner Home Center Sold 800 Power Washers for $350

During 2013, Gardner Home Center sold 800 power washers for $350 each. The power washers carry a 2-year warranty for repairs. Estimates indicate that repair costs will average 2% of sales. How much warranty expense should be accrued as a result of the 2013 sales of this product?

A) $8,400
B) $5,600
C) $2,800
D) No liability should be recorded until units are brought in for repairs.