Bean Company Sells Computers with a 6-Month Warranty

Bean Company sells computers with a 6-month warranty. It is estimated that 2% of all units sold will need repairs under warranty at an estimated cost of $800 per unit. During January, the company sold 100,000 computers at $7,000 each; 1,500 of those computers were turned in for repairs during that same month. The total actual repairs costs amounted to $740,000 from the computer parts inventory. The balance in the Estimated Warranty Liability Account on January 1, 2019 was $60,000.
What is the balance in the Estimated Warranty Liability Account at the end of January 2019?

A) $ 920,000
B) $1,660,000
C) $ 860,000
D) $2,400,000