36) Thomas Company offers a five-year warranty on its products. Thomas previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Thomas reported warranty costs of $75,000 on $2,500,000 in 2023 and $90,000 on $3,000,000 in 2024. Sales revenue for 2025 was $5,000,000. What is the adjustment to Retained Earnings in 2025 (ignore income tax considerations)? 36) A) $85,000 B) $0 C) $60,000 D) $25,000 37) Coleman Inc. purchased a patent on January 1, 2023 for $400,000. Coleman did not record amortization expense on the patent for 2023 and 2024. At the purchase date, the expected useful life of the patent was 10 years. At December 31, 2025, what should be recorded as the Amortization Expense? 37) A) $80,000 B) $0 because the value of the patent has not decreased C) $40,000 D) $120,000