All Things Digital Company Starts the Year with a Credit

Multiple Choice

All Things Digital Company starts the year with a credit balance of $3500 in its Estimated Warranty Payable account.During the year,there were $224,000 in sales and $4800 in warranty repair payments.All Things Digital estimates warranty expense at 2% of sales.At the end of the year,what is the balance in the Estimated Warranty Payable account?

A) $4480 debit
B) $4800 credit
C) $3500 debit
D) $3180 credit