AA Inc estimates that warranty costs will be 2.5% of sales. During the year 2021, sales totaled $4,500,000. AA Inc's Estimated Warranty Payable balance on January 1, 2021 was $55,000 and on December 31, 2021's year-end balance sheet the account balance was $48,000. A. What amount was paid in warranties during 2021? B. Do you recommend that AA Inc retain the 2.5% estimate? Why or why not. Answer in one brief bullet point or sentence. C. AA Inc signed a 3-month 4% $35,000 Note Payable on December 1, 2021. Write the journal entry for the N/P on December 1, the adjusting entry on December 31 relating to the note, and. the payment of the note and interest owing on the maturity date (February 29, 2022).