Use the Following Information for Questions Below

Multiple Choice

Use the following information for questions below
Ruby's & Rings Inc.offers a two-year assurance warranty against failure of its products.The estimated liability is 4% of sales in the year of sale and 6% in the second year.Sales for 2020 and 2021 were: $2,500,000 and $2,800,000,respectively.The company incurred no warranty costs in 2020 but in 2021 they spent $175,000 on repairs related to the warranties issued in 2020 and 2021.
-The warranty provision at the 2020 year end was

A) $0.
B) $100,000.
C) $150,000.
D) $250,000.