Mariano Corporation Sells 11,000 Units of Inventory During the First

Mariano Corporation sells 11,000 units of inventory during the first year of operations for $500 each.Mariano provides a one-year warranty on parts.It is estimated that 4% of the units will be defective and that repair costs are estimated to be $50 per unit.In the year of sale,warranty contracts are honored on 100 units for a total cost of $5,000.What amount will be reported as Estimated Warranty Liability at the end of the year?

A) $5,000
B) $10,000
C) $17,000
D) $22,000