Geiss Motorsports Sold 50 Motorbikes for $1,000 Each

Geiss Motorsports sold 50 motorbikes for $1,000 each.The bikes carry a two-year warranty for repairs.Estimates are that repair costs will average 2% of the total selling price.What amount will be recorded in the estimated warranty liability account as a result of selling the bikes?

A) $20
B) $500
C) $1,000
D) none until the bikes are returned for repairs