Synergy Appliances Sells Dishwashers with a 4-Year Warranty

Multiple Choice

Synergy Appliances sells dishwashers with a 4-year warranty. In 2013, sales revenue for dishwashers is $85,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of Synergy Appliances in 2013?

A) $3,825.00
B) $956.25
C) $1,400.00
D) $3,000.00