The Auditor for Universal Tools, Inc $$\begin{array} { | c | r | r | } \hline \text { Warranty Liability } & 25,000 & \\\hline \text { Warranty Expense } & & 25,000 \\\hline\end{array}$$

The auditor for Universal Tools, Inc. discovered in 2019 that the warranty liability account showed a $25,000 debit balance. She investigated and discovered that the 2% estimate based on sales for warranty expense was recorded and understated, and it was more likely 3.5%. Sales for 2019 were $6,000,000. What is the appropriate journal entry as a result of this discovery?

A) $$\begin{array} { | c | r | r | } \hline \text { Warranty Liability } & 25,000 & \\\hline \text { Warranty Expense } & & 25,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 90,000 & \\\hline \text { Warranty Liability } & & 90,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Warranty Liability } & 90,000 & \\\hline \text { Warranty Expense } & & 90,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Warranty Expense } & 210,000 & \\\hline \text { Warranty Liability } & & 210,000 \\\hline\end{array}$$