At December 31, Year 1, a company had an accrual of $40,000 for the Estimated Liability under Warranties account. During Year 2, the company sold 1,000 new units under warranties estimated at $100 per unit. The actual parts and labor warranty expenditures for Year 2 were $90,000. Warranty expense for Year 2 should be

A 100,000

B 40,000

C 90,000

D 50,000