Bison Company Reported Sales Revenue for 2013 of $900,000

Bison Company reported sales revenue for 2013 of $900,000. The products were sold with a nine-month warranty. Members of Bison's management estimate the cost of the warranty will be equal to 5% of sales revenue. Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?

A) a debit to Estimated Warranty Payable for the actual amount of payments
B) a credit to Estimated Warranty Payable for $45,000
C) a debit to Estimated Warranty Payable for $45,000
D) a debit to Warranty Expense for the actual amount of payments