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(17) Hector Sales Co. began operations early this year, selling a product that c...
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(17) Hector Sales Co. began operations early this year, selling a product that carries a 1-year warranty; any defective units will be replaced within that time. The product has a cost to Hector Sales of $55 and a selling price of $107. Hector estimates that approximately 1% of the units will be defective. During the year, 62,000 units were sold and 274 units were returned for replacement. What is the balance in Warranty Payable at the end of the current year?
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