Macy Furniture sells a line of products that carry a three-year warranty against defects at actuatra charge. Based on industry experience, the estimacarvarantee-vets are 09/ 6 Sales. Sales and actual warranty expenditures for 2020 were $200,000 and $1,500, respectively.

The amount of warranty expense that Macy Furniture should report in its 2020 income statement is

A. $18.000.

B. $16.500

C. $19,500.

D. $1.500