During 2017, Blevert Co. introduced a new line of machines that carry a threeyear warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 1% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first threeyear period were as follows:

During 2017, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 1% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales 2017 2018 2019 $300,000 1,000,000 2,500,000 $3,800,000 Actual Warranty Expenditures $2,000 30,000 110,000 $142,000 What amount should Blevert report as warranty expense for 2017? A. $33,000 B. $35,000 O C. $31,000 OD. $2,000