Roy Electric (RE) owed Estimated Warranty Payable of $1, 200 at the end of 2015. During 2016, RE made sales of $110,000 and expects product warranties to cost the company 2% of the sales. During 2016, RE paid $2, 700 for warranties. What is RE's Estimated Warranty Payable at the end of 2016? $700 $2, 200 $2, 700 $3, 400