Cycle Sales, Inc. offers warranties on all their bikes. They estimate warranty expense at 5% of sales. At the beginning of 2019, the Estimated Warranty Payable account had a credit balance of $2,000. During the year Cycle Sales had $304,000 in sales and had to pay out $5,300 in warranty payments. How much Warranty Expense will be reported on the 2019 income statement? O A. $15,200 B. $7,300 C. $13,200 O D. $11,900