Table 11-13 Arc Digital Starts the Year with Balances in Its Estimated

Multiple Choice

Table 11-13
Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and $3,200 of warranty repair payments. Arc Digital estimates warranty expense at 1.5% of sales.
-Refer to Table 11-13. At the end of the year, what was the balance in the estimated warranty payable account?

A) $2,850 debit
B) $1,050 credit
C) $3,200 debit
D) $1,420 debit