Vancouver Corp. uses the expense approach to account for warranties. They sell a used car for $ 18,000 on November t 25, 2020, with a one-year warranty covering parts and labour. Warranty expense is estimated at 4% of the selling price, and the appropriate adjusting entry is recorded at December 31, 2020. On February 18, 2021, the car is returned for warranty repairs. This cost Vancouver $200 in parts and $ 500 in labour. When recording the March 12, 2021 transaction, Vancouver would debit Warranty Expense with

O a. $200

O b. $ 700

O c. zero

O d. $500