An entity offers a limited one-year warranty on its products and estimates that warranty costs will equal 1% of annual sales. The summarized estimated warranty liability account at December 31, 20x2 was as follows: Warranty Liability Cr. $8951 Balance, January 1, 20x2 Dr. 85000 Cr. 80000 Cr. $3951 Balance, December 31, 20x2 Sales for the year ended December 31, 20x2 equaled which of the following amounts? Select one: O a. $395100 O b. $895100 c. $8000000 Od: $8500000