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. At the end of the year, what was the balance in the Estimated Warranty Payable account?

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