Cycle Sales, Inc. offers warranties on all their bikes. They estimate warranty expense at 5.5% of sales At the beginning of 2025, the Estimated Warranty Payable account had a credit balance of $1.800. During the year, Cycle Sales had $303,000 in sales and had to pay out $5,800 in warranty payments. How much Warranty Expense will be reported on the 2025 income statement? A. $7,600 B. $12,665 OC. $16,665 OD. $14.865