– Doxa Company is a US North-East regional frm in the business of selling red widgets – Doxa Company has historically experienced a warranty expense of 0.2% of sales – In FY 2017, it sold $500,000 of red widgets, and recorded a debit of $10,000 to the warranty expense account and $10,000 to the warranty liability account – By December 2017, Daxa Company received a warranty claim to replace red widgets – The cost of this claim is $4000, which Doxa Company recorded as a debit to the warranty liability account and a credit to the inventory account What amount should Doxa Company report under the Warranty expense account in FY 2017?

(a) $10,000

(b) $4000

(c) $14,000

(d) $6000