Sara Digital Starts the Year with $2,500 in Its Estimated

Multiple Choice

Sara Digital starts the year with $2,500 in its Estimated Warranty Payable account. During the year, there were $210,000 of sales and $4,500 of warranty repair payments. Sara Digital estimates warranty expense at 2% of sales. The journal entry to record this will include a debit to Warranty Expense for:

A) $4,200
B) $4,500
C) $2,500
D) $2,200