Question 23

Emma Company provides a 12-month warranty on all their products. During 2016, they had total sales of $700,000, and estimated warranty costs to be 3% of sales. On January 1, 2016, the Estimated Warranty Liability account had a debit balance of $3,000, and it had a credit balance of $5,000 on December 31, 2016. What was the actual cost of repairs covered under warranties during 2016?

	A.	$17,500
	B.	$19,500
	C.	$21,000
	D.	$13,000