On January 1, 2022, NOLs accounts showed a credit balance of $21,000 for Estimated Liability for Warranties. Sales for the year totalled $1,000,000. The companys experience has shown that warranty costs averaged 3% of sales. Cash payments for providing warranty service were $25,000 during the year ending on December 31, 2022. Based on these details,

A. the balance of the Estimated Liability for Warranties at December 31, 2022 should be $26,000

. B. the warranty expense for 2022 should be $25,000.

C. the warranty expense for 2022 should be $26,000.

D. the balance of the Estimated Liability for Warranties at December 31, 2022 should be $30,000.

E. the balance of the Estimated Liability for Warranties at December 31, 2022 cannot be determined without additional information.