Question: Excom sells radios and each unit carries a 2 - year replacement warranty. The cost of repair defects under the warranty is estimated at 5

Excom sells radios and each unit carries a 2-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 153 radios for $45 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense? (Round your answer to the nearest dollar.)
a. $3,825
b. $45
c. $344
d. $25

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