State Street Digital, Inc. starts the year with

$3,100

in its Estimated Warranty Payable account. During the year, there were

$219,000

in sales and

$5,400

in warranty repair payments. State Street Digital estimates warranty expense at

4%

of sales. The Warranty Expense for the year is ________.

A.

$3,100

B.

$6,460

C.

$5,400

D.

$8,760