Bespoke, Inc. offers warranties on all their bikes. They estimate warranty expense at

44%

of sales. At the beginning of 2017, the Estimated Warranty Payable account had a credit balance of

$2,000.

During the year, Bespoke had

$296,000

in sales and had to pay out

$5,700

in warranty payments. At the end of the year, what is the closing balance in the Estimated Warranty Payable accounts?

A.

$11,840

B.

$8,140

C.

$9,840

D.

$7,700