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Sony introduces a new compact music player to compete with Apple's iPod that carries a...

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Accounting

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Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 1% of sales, By the end of the first year of selling the product, total sales are $29.3 million, and actual warranty expenditures are $130,000. What amount (if any) should Sony report as a liability at the end of the year? (Enter your answer in dollars, not millions. For example, $5.5 million should be entered as 5,500,000.) Warranty liability

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